Variable Costing Profit for the Period 1^st July Through 30^th

question 11

Multiple Choice

Variable costing profit for the period 1^st July through 30^th September was $400. Inventory data are as follows: What is the profit if absorption costing is used?

• A) $300
• B) $500
• C) $400
• D) $600

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Definitions:

Consolidation

The process of combining assets, liabilities, and other financial items of two or more entities into one.

Corporations

Legal entities that are separate from their owners, offering limited liability to its shareholders, and created under corporate law.

Merger

The combination of two or more companies into a single legal entity, often to achieve greater efficiencies of scale and scope.

Rights and Liabilities

Legal entitlements and responsibilities held by individuals or entities under the law.