A Company That Produces a Single Product Had a Net

question 85

Multiple Choice

A company that produces a single product had a net operating income of $75,000 using variable costing and a net operating income of $95,000 using absorption costing. Total fixed manufacturing overhead was $50,000 and production was 10,000 units both this year and last year. Last year was the first year of operations. Between the beginning and the end of the year, the inventory level:

• A)decreased by 20,000 units
• B)increased by 20,000 units
• C)decreased by 4,000 units
• D)increased by 4,000 units

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Definitions:

Demineralization

The loss or removal of minerals from bones or teeth, which can weaken their structure and function.

Calcium Loss

The depletion of calcium from bones or the body, which can lead to decreased bone density and increase the risk of fractures.

Weight Bearing

The act of supporting weight with the legs or other parts of the body, important in rehabilitation and physical therapy.

Phototherapy

A treatment using light of specific wavelengths to treat conditions like jaundice in newborns or certain skin disorders.