Brady Ltd Uses a Normal Absorption Costing System in Which

question 32

Multiple Choice

Brady Ltd uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred: The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods.
The number of units in ending finished goods inventory was

• A) 7,400
• B) 6,000
• C) 1,000
• D) 4,600

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Definitions:

Functional Strategy

A specific, action-oriented plan or set of actions designed to achieve a set objective within a function of an organization, such as marketing, finance, or production.

Business Strategy

A plan crafted by businesses to achieve specific goals and objectives, outlining the methods and steps to compete in the market.

Divisional Strategy

An approach where an organization is structured into semi-autonomous units or divisions, each focusing on a specific product line, market segment, or geographical area.

Corporate Strategy

The overall plan and direction of a company, involving the integration of operational strategies to achieve long-term objectives.