Alpha, Beta, and Gamma Companies Three new companies (Alpha, Beta, and Gamma) began operations on January 1 of the current year. Consider the following operating costs that were incurred by these companies during the complete calendar year:
Refer to Alpha, Beta, and Gamma Companies. Based on sales of 7,000 units, which company will report the greater income before income taxes if absorption costing is used?
A) Alpha Company
B) Beta Company
C) Gamma Company
D) All of the companies will report the same income.

Question

Alpha, Beta, and Gamma Companies Three new companies (Alpha, Beta, and Gamma) began operations on January 1 of the current year. Consider the following operating costs that were incurred by these companies during the complete calendar year:
 Refer to Alpha, Beta, and Gamma Companies. Based on sales of 7,000 units, which company will report the greater income before income taxes if absorption costing is used?
A) Alpha Company 
B) Beta Company 
C) Gamma Company 
D) All of the companies will report the same income.

Quizplus · Accepted Answer

The Answer of Alpha, Beta, and Gamma Companies Three new companies (Alpha, Beta, and Gamma) began operations on January 1 of the current year. Consider the following operating costs that were incurred by these companies during the complete calendar year:
 Refer to Alpha, Beta, and Gamma Companies. Based on sales of 7,000 units, which company will report the greater income before income taxes if absorption costing is used?
A) Alpha Company 
B) Beta Company 
C) Gamma Company 
D) All of the companies will report the same income.

Alpha, Beta, and Gamma Companies Three New Companies (Alpha, Beta