During Its First Year of Operations, Kima Corp

question 84

Multiple Choice

During its first year of operations, Kima Corp. experienced the following: Units manufactured 70,000
Units sold 60,000
Product costs:
Variable $10.50/unit
Fixed $315,000
Selling and Administrative:
Variable $1.60/unit
Fixed $140,000
The cost of goods sold under absorption costing would be:

• A)$585,000
• B)$735,000
• C)$945,000
• D)$900,000

---

Definitions:

Buyer-supplier Relationships

The ongoing interactions, transactions, and partnerships between businesses that purchase goods or services and the companies that supply them.

Overcommitting

The act of promising more resources, time, or effort than can realistically be delivered, often leading to stress or failure to meet expectations.

Supply Management

The process of managing relationships with suppliers and controlling all the materials needed to produce goods or services.

Horizontal Integration

A strategy where a firm grows by acquiring or merging with its competitors in the same industry to achieve economies of scale or scope.