A Manufacturing Company That Produces a Single Product Has Provided

question 139

Multiple Choice

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing?

• A)$15,000
• B)$12,100
• C)$2,900
• D)$5,300

---

Definitions:

Cash Collection Period

The average period of time between when a sale is made on credit and when the payment is received.

Bank Deposit

Funds placed into a banking institution for safekeeping, which can include savings accounts, checking accounts, and certificates of deposit.

Inventory Cycle

The process or time frame from when inventory is acquired to when it is sold, highlighting inventory management efficiency.

Financing Receivables

A type of financial activity where a company uses the money it is owed from customers (accounts receivable) as collateral for a loan.