The net operating income for the year under super-variable costing is:
A)$802,000
B)$714,000
C)$880,000
D)$824,000

Question

Quizplus · Accepted Answer

Super-variable costing is a costing method that treats all manufacturing costs as variable costs. This means that the net operating income for the year under super-variable costing is equal to the sales revenue minus the variable costs. In this case, the sales revenue is $1,516,000 and the variable costs are $714,000. Therefore, the net operating income for the year under super-variable costing is $1,516,000 - $714,000 = $802,000.

The Net Operating Income for the Year Under Super-Variable Costing