Atlas IncUses a Standard Costing System

question 8

Multiple Choice

Atlas Inc.uses a standard costing system.Atlas's year ending balances at December 31,2015 are shown here: What is the standard net operating income of the company for the year ended December 31,2015?

• A)$8,780
• B)$6,290
• C)$8,470
• D)$7,530

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Definitions:

Industry Factors

Industry factors involve the specific conditions, trends, and influences affecting the performance and profitability of companies within a particular sector.

Net Profit Margin

A profitability ratio calculated by dividing net income by revenue, showing how much of each dollar in revenues results in profit.

Industry-Wide Ratios

Comparative metrics that evaluate the financial health or performance of companies across a specific industry, facilitating benchmarking.

Benchmark

A Benchmark is a standard or point of reference against which things may be compared or assessed.