The Following Data Are Available for Ruggles Company for the Year

question 15

Essay

The following data are available for Ruggles Company for the year ended September 30, 2012.
Sales:
Manufacturing costs incurred:
Nonmanufacturing costs incurred:
Required:
a. Determine operating income using the variable costing approach.
b. Determine operating income using the absorption costing approach.
c. Explain why the income was different each year using the two methods. Show computations.

Understand the basic concepts and arguments for and against globalization and free trade.

Comprehend the effects of trade restrictions like tariffs and quotas on domestic economies.

Analyze the impact of technological advancements on transportation costs and global trade.

Evaluate the benefits and drawbacks of trade agreements such as NAFTA.

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Definitions:

Underlying Assets

The financial assets upon which derivative instruments, such as options and futures, are based.

Depreciable Plant Assets

Long-term tangible assets used in the production of income that lose value over time and thus are subjected to depreciation accounting.

Balance Sheet

The Balance Sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Marketable Securities

Financial instruments and assets that can easily be converted into cash without significant loss of value.