At a Break-Even Point of 400 Units Sold,variable Expenses Were

question 39

Multiple Choice

At a break-even point of 400 units sold,variable expenses were $4,000 and fixed expenses were $2,000.What will the 401^st unit sold contribute to operating income?

• A) $0.
• B) $5.
• C) $10.
• D) $15.

Understand the similarities and differences between U.S. GAAP and IFRS in inventory accounting.

Grasp the concepts of FIFO and LIFO inventory methods and their impact on reported income.

Comprehend the International Accounting Standard 2 (IAS 2) and its implications for inventory cost flow assumptions.

Calculate inventory valuation under dollar-value LIFO method.

---

Definitions:

Carbon-Chlorine Bond

A covalent bond between a carbon atom and a chlorine atom, often found in organic chlorine compounds.

Polar

Describes molecules or bonds with an uneven distribution of charge due to differences in electronegativity, leading to partial positive and negative ends.

Tertiary Chloride

A compound featuring a chloride ion (Cl-) attached to a carbon atom, which in turn is connected to three other carbon atoms.

Primary Chloride

A chloride compound where the chlorine atom is bonded to a carbon atom that is itself bonded to no more than one other carbon atom.