Asked by Elizabeth Doqaj on May 09, 2024
Verified
What is the net operating income for the month under variable costing?
A) $12,000
B) $(20,400)
C) $5,600
D) $6,400
Net Operating Income
The profit generated from a business's normal core operations, excluding deductions of interest and taxes.
Variable Costing
An accounting method that only includes variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.
- Contrast variable costing and absorption costing with respect to period costs, costs per unit, and net operating profit.
Verified Answer
MD
Learning Objectives
- Contrast variable costing and absorption costing with respect to period costs, costs per unit, and net operating profit.
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