Week 2 Part 3 Quiz Copy
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Question 1 of 3
1. Question
Why does absorption costing potentially result in an increased profit? Choose the correct answer below.CorrectIncorrect -
Question 2 of 3
2. Question
Bordeaux Motor produces motorcycles. It has a normal production level of 400 units per month, fixed costs of € 800,000 per month, and variable cost per unit of € 1,500 per unit. For the month of September 2019, actual production is 450 units, while sales equal to 410 units. A motorcycle has a selling price of € 4,500.
What is the operating profit over September 2019 if Bordeaux Motor uses variable costing?-
Operating Profit is
CorrectIncorrect -
-
Question 3 of 3
3. Question
Bordeaux Motor produces motorcycles. It has a normal production level of 400 units per month, fixed costs of € 800,000 per month, and variable cost per unit of € 1,500 per unit. For the month of September 2019, actual production is 450 units, while sales equals 410 units. A motorcycle has a selling price of € 4,500.
What is the operating profit over September 2019 if Bordeaux Motor uses absorption costing with a normal costing approach?-
Operating Profit is
CorrectIncorrect -
