Bella Ltd Has Operated for 2 Years

question 93

Multiple Choice

Bella Ltd has operated for 2 years. During that time it produced 1,000 units in year 1 and 800 in year 2, while sales were 800 units in year 1 and 900 in year 2. Variable production costs were $8 per unit during both years. The company uses last-in, first-out (LIFO) for inventory costing. The absorption costing income statements for these 2 years were: Operating profit for year 1 using variable costing would be

• A) $1,600
• B) $(2,800)
• C) $2,200
• D) $400

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Definitions:

Habitual Behaviors

Actions or practices that are performed regularly, often unconsciously, as part of an individual's routine.

Enduring Traits

Persistent characteristics or qualities of an individual's personality that are stable over time and across situations.

Social Leadership

The ability to guide, influence, or direct a group towards achieving shared goals.

Structured Interviews

A systematic method of interviewing where each respondent is asked a set of predetermined questions in a specific order.