Asked by
Yecenia Rodriguez
on Dec 17, 2024
Verified
The amount of operating income that would be reported on the variable costing income statement is
A) $18,900
B) $18,200
C) $18,000
D) $21,000
Operating Income
A measure of a company's profitability from its core business operations, excluding revenue and expenses from non-operational activities.
Variable Costing
A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead.
- Digest the essence of variable costing and its consequences on business judgements.
- Analyze the relationship between sales and production levels and their effect on operating earnings and inventory assessment.
Verified Answer
SB
Learning Objectives
- Digest the essence of variable costing and its consequences on business judgements.
- Analyze the relationship between sales and production levels and their effect on operating earnings and inventory assessment.