Routit Corporation Had the Following Sales and Production for the Past

question 143

Multiple Choice

Routit Corporation had the following sales and production for the past four years: Selling price per unit,variable cost per unit,and total fixed cost are the same each year.There were no beginning inventories in Year 1.Which of the following statements is correct?

• A)Under variable costing,net operating income for Year 3 and Year 4 would be the same.
• B)Under variable costing,net operating income for Year 2 and Year 3 would be the same.
• C)Variable costing net income would exceed absorption costing net income in Year 1.
• D)Absorption costing net income would exceed variable costing net income in Year 4.

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Definitions:

In-The-Canal Hearing Aid

A type of hearing aid that fits partially or completely in the ear canal, offering cosmetic and some auditory advantages.

Cerumen Buildup

Accumulation of earwax in the ear canal, which can lead to blockage and hearing issues.

Excessive Moisture

An overabundance of water or humidity, which can lead to negative effects such as mold growth or skin irritation.

Cerumen Buildup

Accumulation of earwax within the ear canal, leading to potential hearing difficulties or discomfort.