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

question 91

Multiple Choice

Kierst Company, which has only one product, has provided the following data concerning its most recent month of operations: The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
-What is the net operating income for the month under absorption costing?

• A)$7,500
• B)$16,200
• C)$6,200
• D)$10,600

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Definitions:

Treasury

Refers to the department within a government or organization that is responsible for managing the institution's revenue, spending, and debt.

IFRS

International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to bring consistency to accounting language, practices, and statements globally.

Reserves

Funds or assets set aside to cover future expenses, losses, or liabilities.

Asset Revaluations

The process of adjusting the book value of a company's assets to reflect their current market values.