Carr Company Produces a Single Product

question 106

Multiple Choice

Carr Company produces a single product. During the past year, Carr manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows:
-The net operating income for the year under variable costing would be:

• A)$28,000 lower than under absorption costing
• B)$28,000 higher than under absorption costing
• C)$50,000 lower than under absorption costing
• D)$50,000 higher than under absorption costing

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Definitions:

Cleanliness

The state of being clean and free from dirt, and the process of achieving and maintaining that state.

Individualist Cultures

Cultures in which the self is regarded as autonomous, and individual goals and wishes are prized above duty and relations with others.

Personal Goals

Individual objectives, targets, or ambitions that a person aims to achieve or accomplish.

Obligation

A duty or commitment that an individual is bound to, either legally, morally, or emotionally.