Assume That the Company Uses an Absorption Costing System That

question 35

Multiple Choice

Assume that the company uses an absorption costing system that assigns $16 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

• A)$1,066,000
• B)$856,000
• C)$544,000
• D)$808,000

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Definitions:

Nutrient Trap

A mechanism or feature in an ecosystem that captures and retains nutrients, preventing them from being lost and thereby enhancing nutrient availability.

Aquatic Community

A group of species that live in the same habitat and interact with each other in a body of water.

Estuaries

Coastal water bodies where river meets the sea, mixing fresh and saltwater and creating ecosystems with high biological productivity.

Nursery

A place specifically designed for the care and growth of young plants, trees, or children, providing appropriate conditions for development.