Last Year, Wardrup Corporation's Variable Costing Net Operating Income Was

question 54

Multiple Choice

Last year, Wardrup Corporation's variable costing net operating income was $67,200. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $600. What was the absorption costing net operating income last year?

• A) $67,800
• B) $66,600
• C) $67,200
• D) $600

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Definitions:

2-for-1

Describes a type of stock split where a company divides its existing stock into two shares, effectively doubling the number of shares owned by shareholders but potentially halving the price per share.

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Cash Dividend

A disbursement by a corporation from its profits to its stockholders, typically as cash.

Increases

The act or process of becoming larger or greater in size, number, value, or amount.