A Company That Produces a Single Product Had a Net

question 85

Multiple Choice

A company that produces a single product had a net operating income of $75,000 using variable costing and a net operating income of $95,000 using absorption costing. Total fixed manufacturing overhead was $50,000 and production was 10,000 units both this year and last year. Last year was the first year of operations. Between the beginning and the end of the year, the inventory level:

• A)decreased by 20,000 units
• B)increased by 20,000 units
• C)decreased by 4,000 units
• D)increased by 4,000 units

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Definitions:

Muscle Activity

The contraction and relaxation of muscles that lead to movement or maintenance of posture.

Body Temperature

The measure of the body's ability to generate and get rid of heat, reflecting the balance of heat production and loss.

Neuromuscular Junction

The synapse or connection between a motor neuron and a skeletal muscle fiber, enabling muscle contraction.

Atrophy

A decrease in the size of a tissue or organ due to disease, injury, or lack of use, leading to a reduction in function.