Last Year, Clayton Company's Variable Production Costs Totaled £8,000 and Its

question 25

Multiple Choice

Last year, Clayton Company's variable production costs totaled £8,000 and its fixed manufacturing overhead costs totaled £4,800. The company produced 4,000 units during the year and sold 3,600 units. Assuming no units in the beginning stock

• A)under variable costing, the units in ending stock will be costed at £3.20 each.
• B)the net operating income under absorption costing for the year will be £480 lower than net operating income under variable costing.
• C)the ending stock under variable costing will be £480 lower than the ending stock under absorption costing.
• D)the net operating income under absorption costing for the year will be £800 lower than net operating income under variable costing.

---

Definitions:

Geographical Mobility

The movement of people or populations from one location to another, often for reasons of employment, housing, or other socio-economic factors.

Traditional Farming

Agricultural methods that rely on indigenous knowledge, natural resources, and sustainable practices, often passed down through generations.

Herding Cultures

Societies primarily engaged in the raising and tending of livestock, such as sheep, cattle, goats, where herding influences their way of life and social organization.

Marriage

A legally and socially sanctioned union between individuals that establishes rights and obligations between them, as well as between them and their children.