Arianell,Inc.reports the Following Information for August

question 35

Multiple Choice

Arianell,Inc.reports the following information for August:

Calculate the gross profit for August using absorption costing.

• A)$730,000
• B)$700,000
• C)$690,000
• D)$645,000

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Definitions:

Other Expenses

Costs not directly related to the production of goods or services, such as administrative and marketing expenses.

Fixed Cost

Costs that do not change with the level of production or sales volume, remaining constant regardless of business activities.

Planning Budget

An initial budget created using the assumptions of a particular level of activity to guide a company's financial decisions.

Net Operating Income

A financial metric that measures a company's profitability from its core business operations, excluding the effects of financing and taxes.