A Business Operated at 100% of Capacity During Its First

question 75

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs: ​
If 600 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) $24,300
• B) $28,200
• C) $22,800
• D) $34,000

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Definitions:

Learning Percentage

A measure indicating the rate at which performance or productivity improves due to learning and increased proficiency over time.

Operations Management

Operations Management is the administration of business practices aimed at ensuring maximum efficiency within an organization, focusing on managing processes and converting materials and labor into goods and services as efficiently as possible.

Learning Percentage

The rate at which productivity improves as workers gain experience, often leading to reduced time and cost to complete tasks.

Operations Management

The field that deals with designing, overseeing, and controlling the process of production and redesigning business operations in the production of goods and services.