Asked by Hadeel Jaber on May 09, 2024
Verified
The net operating income (loss) under absorption costing in Year 2 is closest to:
A) $74,000
B) $183,000
C) $68,000
D) $138,000
Absorption Costing
A method of accounting that incorporates both variable and fixed manufacturing expenses into the pricing of a product.
Operating Income
Income from a company’s everyday business operations, calculated before taxes and interest.
- Learn the concept of net operating income as applied in both absorption and variable costing methods.
Verified Answer
DS
Dideoluwa SotuboMay 16, 2024
Final Answer :
C
Explanation :
Absorption costing unit product costs: 
Absorption costing income statement: 
Absorption costing income statement: 
Learning Objectives
- Learn the concept of net operating income as applied in both absorption and variable costing methods.
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