Asked by katie sofia on May 04, 2024
Verified
The net operating income (loss) under absorption costing in Year 2 is closest to:
A) $56,000
B) $224,000
C) $80,000
D) $164,000
Operating Income
This represents the earnings before interest and taxes (EBIT) derived from a company's principal operating activities.
Year 2
Refers to the second year of a specific time frame, project, or financial period.
- Understand the concept of net operating income under both absorption and variable costing methods.
Verified Answer
PJ
Pinki JangirMay 09, 2024
Final Answer :
C
Explanation :
Absorption costing unit product costs: 
Absorption costing income statement: 
Absorption costing income statement: 
Learning Objectives
- Understand the concept of net operating income under both absorption and variable costing methods.
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