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

---

Definitions:

Violent TV

Pertains to television content that includes scenes of physical or psychological harm or aggressive behavior.

Moderate Levels

An intermediate degree or intensity of a given phenomenon, neither too high nor too low but within a middle range.

Nonviolent People

Individuals who prefer peaceful and non-aggressive means to resolve conflicts and achieve their objectives.

Overdetermined

A term used in psychoanalysis to describe a situation or symptom that is caused by several different factors or motives.