The Beginning Balance in the Common Stock Account of Alpha

question 19

True/False

The beginning balance in the Common Stock account of Alpha Technologies Inc.was $80,000.The revenues and expenses amounted to $60,000 and $40,000,respectively.During the year,the company did not declare any dividends or issue common stock.The Common Stock account will have $100,000 at the end of the year.

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Definitions:

Fixed Manufacturing Overhead

The costs associated with manufacturing that do not vary with the level of production output, including rent of the facility and salaries of the staff.

Variable Selling

Costs that vary directly with the level of sales activity, such as commissions or shipping charges.

Administrative Expense

Expenses related to the general operation of a business, such as office supplies, management salaries, and utilities.

Fixed Selling

Costs that remain constant regardless of the volume of goods or services sold.