Hackney Company, Which Has Only One Product, Has Provided the Following

question 55

Multiple Choice

Hackney Company, which has only one product, has provided the following data concerning its most recent month of operations:
-What is the total period cost for the month under the variable costing approach?

• A) $42,300
• B) $81,400
• C) $114,300
• D) $72,000

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Definitions:

Purchased Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets at the acquisition date.

Market Value

The existing rate at which an asset or service is offered for buy or sell within the marketplace.

Amortize Intangible Assets

The process of systematically reducing the recorded cost of intangible assets over their useful life or legal life, whichever is shorter.

Useful Lives

The estimated time period that an asset is expected to be used by a business, contributing to its revenue generation.