Which of the Following Choices Correctly Depicts Whether McDonald's, the University

question 21

Multiple Choice

Which of the following choices correctly depicts whether McDonald's, the University of Wisconsin, and Apple Inc. would have a need for managerial accounting? $\begin{array}{llll}&&\text { University of }\\&\text { McDonald's}&\text { Wisconsin }&\text {Apple Inc. }\\\text { A. } & \text { Yes } & \text { Yes } & \text { No } \\\text { B. } & \text { Yes } & \text { No } & \text { Yes } \\\text { C. } & \text { Yes } & \text { Yes } & \text { Yes } \\\text { D. } & \text { No } & \text { Yes } & \text { No } \\\text { E. } & \text { No } & \text { Yes } & \text { Yes }\end{array}$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D
• E) Choice E

---

Definitions:

Absorption Costing

A method in accounting that adds all the manufacturing-related expenses like direct materials, direct labor, and all types of overhead (both variable and fixed) to the cost of a product.

Net Operating Income

Profit generated from a company's core business operations, excluding costs and income from non-operational activities.

Operating Loss

A situation where a business's total expenses exceed its revenues, not accounting for interest or taxes.

Year 2

Refers to the second year of a company's operation, a project, or a specific timeframe being analyzed.