Under absorption costing, for November the company would report a:

A) $145,000 profit
B) $125,000 profit
C) $125,000 loss
D) $120,000 profit

Absorption Costing

An accounting technique that integrates all costs associated with production, including direct materials, direct labor, and variable and fixed overhead costs, into the cost of a product.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Loss

The negative result from operations or other transactions when costs and expenses exceed revenues.