A Business Operated at 100% of Capacity During Its First

question 94

Multiple Choice

A business operated at 100% of capacity during its first month and incurred the following costs: ​
If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month,what is the amount of the manufacturing margin that would be reported on the variable costing income statement?

• A) $104,000
• B) $106,000
• C) $140,000
• D) not reported

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Definitions:

Administrative Principles

Fundamental rules and guidelines related to the organization and management of businesses, focusing on efficiency and planning.

Contemporary Businesses

Modern business enterprises that operate in the current market environment, characterized by rapid technological advancements, globalization, and changing consumer preferences.

Functions of Management

The essential roles and activities managers engage in to achieve organizational goals, commonly identified as planning, organizing, leading, and controlling.

Management Functions

Outlines the primary tasks and responsibilities of managers, typically including planning, organizing, leading, and controlling.