Answer the Following Questions Using the Information Below

question 139

Multiple Choice

Answer the following questions using the information below:
Tunney Corporation incurred fixed manufacturing costs of $7,200 during 2011. Other information for 2011 includes:
The fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
-Under variable costing, the fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total:

• A)$8,550
• B)$7,200
• C)$9,000

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Definitions:

Equivocality

The quality of being open to more than one interpretation; ambiguity especially in the context of organizational communication and decision-making.

Processes of Organizing

The series of actions and mechanisms put in place to arrange resources and activities logically and efficiently within an organization to achieve goals.

Self-Organizing Systems

Systems characterized by a lack of equilibrium typically due to a large influx of new information or significant environmental shifts and are thus in the process of acting on this new information as a process of self-renewal. Self-organizing systems exhibit autocatalysis; that is, the catalysts for change and renewal occur in elements of the system itself as it seeks to renew itself.

Punctuated Meaning

A situation where a sudden event or realization leads to a significant change in understanding or interpretation of a situation or concept.