Question: If Lakota uses variable costing, _______. In its first year of business, Lakota, Inc. produced 600 units and sold 400 units, Ir Lakota uses variable

If Lakota uses variable costing, _______.

In its first year of business, Lakota, Inc. produced 600 units and sold 400 units, Ir Lakota uses variable costing. O A. its operating income for the period will be lower than under absorption costing O B. its operating income for the period will be higher than under absorption costing O C. its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing O D. its operating income will be the same as under absorption costing

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Gross profit is calculated by deducting from sales revenue. Jupiter Inc. reports the following information for August; Calculate the contribution margin for the month of August. Dentofax Inc. reports...

In its first year of business, Lakota, Inc. produced 600 units and sold 400 units. If Lakota uses variable costing, OO O A. its operating income for the period will be higher than under absorption...

In its first year of business, Greenlam Inc. produced 600 units and sold 400 units. If Greenlam uses variable costing, ________. A) its value of ending inventory reported in the balance sheet will be...

7) In its first year of business, Greenlam, Inc. produced 600 units and sold 400 units. If Greenlam uses variable costing. A) its value of ending Finished Goods Inventory reported in the balance...

In its first year of business, JML, Inc. produced 400 units and sold 380 units. If JML uses variable costing, its value of ending Finished Goods Inventory reported in the balance sheet will be higher...

33) 33) Groovelex Inc. has collected the following data for the current year units units Beginning inventory Units produced Units sold Sale price Direct materials Direct labor Variable manufacturing...

In its first year of business, Talula, Inc. produced and sold 600 units. If Talula uses variable costing, - O A. its value of ending Finished Goods Inventory reported in the balance sheet will be...

Assume the company uses variable costing. Prepare an income statement for Year 1 and Ye Reconcile the difference between variable costing and absorption costing net operating income in Year 1. (Enter...

Nabors Ltd manufactures and sells one product. The following information pertains to each of the companys first two years of operations: Variable cost per unit: Manufacturing: Direct materials $15...

Simpson Company manufactures and sells a single product. During the company's first year of operations, the company produced 42.500 units and sold 38.000 units. Selling price is $110/unit. The...

a) What exposure limit do you recommend to be considered for Chromium XI ? why? b) What exposure limit do you recommend for welding fumes? Why?

Revenue and Cost Structure Worksheet of any business you are willing to open Use the space below to determine your revenue projections and estimated expenses. Revenue (money coming in): What value...

The data below represent the CPI for tradables in New Zealand from the second quarter of 1999 to the third quarter of 2011 (second quarter 2006 is the base) a. Calculate the simple price index for...

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

Why might a manager intentionally distort appraisal results? What would you recommend to minimize this problem?

Employees in your company currently choose and enroll in benefits programs after reading communications brochures, completing enrollment forms, and sending them to their HR rep. A temporary staff has...

Why have the roles and activities of the HRM function changed over the past 20 to 30 years? What has been driving this change? How effectively do you think HRM has responded?