Bethel,Inc

question 65

Multiple Choice

Bethel,Inc.has collected the following data.(There are no beginning inventories. )

What is the operating income using variable costing if 500 units are sold?

• A)$15,800
• B)$45,000
• C)$60,000
• D)$4200

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Definitions:

Operating Activities

Business actions directly related to the production, selling, and delivery of a company's goods and services, reflected in its cash flow.

Cash Flow

The movement of funds into and out of a business or project, critical for maintaining operations and investment activities.

Operating Section

Part of a company's financial statement (specifically, the cash flow statement) that reports on the cash activities related to its primary operations, such as cash receipts and payments from goods and services.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be consumed or converted into cash within a year.