Ruggles Company has provided the following data for the year ended September 30,2013.
Required:
a.Determine operating profit using the variable-costing approach.
b.Determine operating profit using the absorption-costing approach.
c.Explain why operating profit is not the same under the two approaches.
_____________________________________________________________________________________________
_____________________________________________________________________________________________
Definitions:
Exchange Rate
The value of one currency for the purpose of conversion to another.currency for the purpose of conversion to another.
Lawn Mower
A machine equipped with revolving blades to cut grass to an even length, typically used in garden and lawn maintenance.
Bubbles
Economic phenomena characterized by rapid increases in asset prices to levels significantly above their fundamental values, followed by abrupt crashes.
Demand
The desire combined with the ability to purchase a specific quantity of a good or service at a particular price and time.
Q12: The degree of operating leverage at a
Q19: In a process-costing system,individual jobs differ in
Q45: Direct material costs are locked in when
Q49: Bondi Hospital uses a job-costing system
Q138: What is the target operating profit?<br>A)$240 000<br>B)$180
Q149: Which of the following is an example
Q184: Although managers are able to achieve a
Q246: A _ links an indirect cost to
Q286: A job that shows low profitability may
Q349: What is operating profit when using absorption