Use the Information Below to Answer the Following Question(s)

question 169

Multiple Choice

Use the information below to answer the following question(s) .Gold Corporation has the following sales budget for the last six months of 2019:
Historically, the cash collection of sales has been as follows:

-Cash collections for October are

• A)$108,000.
• B)$184,800.
• C)$199,000.
• D)$176,400.
• E)$186,800.

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Definitions:

Variable Costing

An accounting method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.

Absorption Costing

A system of accounting that encompasses the full range of manufacturing costs—direct materials, direct labor, and overheads both variable and fixed, within the cost framework of a product.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in a net profit of zero.

Eastern Division

A geographical or operational segment of a larger organization designated to cover the eastern part of a country or area.