23) Which of the following measures of profit is best for use in predicting the future profits of a company? a) Net Income b) Income from Operations c) Income from Continuing Operations (after-tax) d) Gross Margin 24) The performance evaluation of an investment center is typically based on its: a) Flexible budget variance for direct materials and direct labor b) Budget variances for sales price and sales volume O ROI d) Actual net income compared to budgeted net income 25) Yellow Sneakers inc. has the following costs during their first year of business: Direct materials Direct labor Variable (unit related) factory overhead Fixed Factory overhead 55.00 per unit Variable Selling and Administrative Fixed Selling and Administrative There are 10,000 pair of sneakers produced this year but only 9,000 pair were sold at $40 each. $56,000 53.00 per unit $50,000 What is the amount of ending inventory if the company uses absorption costing per GAAP? a) $8,000 b) $14,222 c) $7,000 d) $13,600 2.5 26) Refer to information in the question above. What is the amount of ending inventory if the company uses variable costing? a) $8,000 b) $11,000 c) $7,000 d) $16,600 27) Refer to information in the question above. What is the amount of ending inventory if the company uses throughput costing? a) $3,000 b) $14,222 c) $7,000 d) $2,000 51Page