Dull Corporation Has Been Producing and Selling Electric Razors for the Past

question 88

Multiple Choice

Dull Corporation has been producing and selling electric razors for the past ten years.Shown below are the actual net operating incomes for the last three years of operations at Dull: Dull Corporation's cost structure and selling price has not changed during its ten years of operations.Based on the information presented above,which of the following statements is true?

• A)Dull Corporation operated above the breakeven point in each of the three years presented.
• B)For the three years presented in total,Dull Corporation sold more units than it produced.
• C)In Year 10,Dull Corporation produced fewer units than it sold.
• D)In Year 9,Dull Corporation produced more units than it sold.

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Definitions:

Budgeted Cost

Estimated costs associated with manufacturing a product, conducting a project, or running a department during a specific period.

Goods Manufactured

The total value or volume of products completed and ready for sale during a specific accounting period.

Work in Process Inventory

Inventory that includes the raw materials, labor, and overhead costs for products that are in the production process but not yet completed.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and salaries of non-direct labor, that cannot be directly tied to specific product units.