Elbon Company, Which Has Only One Product, Has Provided the Following

question 127

Multiple Choice

Elbon Company, which has only one 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)$10,200
• B)$(19,000)
• C)$8,800
• D)$1,400

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure that the total debits equal the total credits.

Kitchen Equipment

Kitchen equipment includes the tools and appliances used in the preparation, cooking, and storage of food in a kitchen setting.

Accounts Payable

A liability account on the balance sheet representing money owed by a company to its creditors or suppliers for purchases made on credit.

Credit Column

The section of an accounting record where increases in liabilities, revenues, and equity accounts are recorded.