The Company Is Considering Using Either Super-Variable Costing or a Variable

question 44

Multiple Choice

The company is considering using either super-variable costing or a variable costing system that assigns $25 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?

• A)Super-variable costing net operating income exceeds variable costing net operating income by $150,000.
• B)Super-variable costing net operating income exceeds variable costing net operating income by $336,000.
• C)Variable costing net operating income exceeds super-variable costing net operating income by $336,000.
• D)Variable costing net operating income exceeds super-variable costing net operating income by $150,000.

Recognize the significance of evidence and reasons in supporting claims.

Understand the importance of being unbiased and truthful for trustworthiness.

Apply critical thinking skills to evaluate the plausibility of claims.

Recognize conflicts of interest and how they affect trustworthiness.

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Definitions:

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An individual, typically a man, who dresses in women's clothes and often performs for entertainment purposes, embracing exaggerated femininity.

Cross-dresses

The act of wearing clothes traditionally associated with the opposite sex.

Entertain

To amuse, engage, or host someone or a group of people through performances, activities, or hospitality.