A Business Operated at 100% of Capacity During Its First

question 157

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs: If 1,000 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet?

• A)$38,000
• B)$40,500
• C)$34,000
• D)$47,000

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Definitions:

PCBs

Polychlorinated biphenyls, a group of toxic chemical compounds that are environmentally dangerous and were widely used in electrical equipment before being banned.

Pesticide Residue

Trace amounts of chemicals from pesticides that remain on or in food after they are applied to crops.

Companion Regulations

Secondary regulations that accompany primary legislation to provide detailed guidance on its implementation or enforcement.

Environmental Impact Statement

A document prepared to describe the effects for proposed activities on the environment, intended to inform decision-making on such activities.