Under Absorption Costing,if Sales Remain Constant from Period 1 to Period

question 147

Multiple Choice

Under absorption costing,if sales remain constant from period 1 to period 2,the company will report a larger income in period 2 when

• A)period 2 production exceeds period 1 production.
• B)period 1 production exceeds period 2 production.
• C)variable production costs are larger in period 2 than period 1.
• D)fixed production costs are larger in period 2 than period 1.

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Definitions:

O-H Stretch

A vibrational mode observed in infrared spectroscopy, characteristic of the stretching of the O-H bond in molecules, indicative of the presence of alcohols or water.

Alcohols

Organic compounds characterized by one or more hydroxyl (-OH) groups attached to a carbon atom.

IR Absorption

A technique in spectroscopy where molecules absorb infrared light, causing vibrational transitions, used to identify chemical compounds.

IR Absorption

The process by which molecules absorb infrared radiation at specific wavelengths corresponding to vibrations of molecular bonds.