Under Variable Costing, What Is the Total Cost That Would

question 206

Multiple Choice

Under variable costing, what is the total cost that would be assigned to Carlos' finished goods inventory at the end of the first year of operations?

• A)$15,000
• B)$42,125
• C)$44,000
• D)$14,000

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Definitions:

M2

A measure of the money supply that includes all elements of M1 (such as cash and checking deposits) plus "near money" like savings deposits, money market securities, and other time deposits, which are less liquid and not as easily converted to physical cash.

Depositors

Individuals or entities that place their money in a bank for safekeeping and earn interest over time.

M1 Money Supply

A measure of the money supply that includes all physical money such as coins and currency, as well as demand deposits and other liquid assets held by the public.

Checkable Deposits

Bank account balances that can be accessed using checks, debit cards, or electronic transfer, for the purpose of making payments.