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

---

Definitions:

Question

A sentence or phrase designed to elicit information or prompt a response from someone.

She

"She" is a pronoun used to refer to a female person or animal.

Trustees

Individuals or members of a board given control or powers of administration of property in trust with a legal obligation to manage it solely for the beneficiary's benefit.

President

A president is the elected head of state in a republic, responsible for executing government policies, making executive decisions, and often serving as the symbolic leader of the country.