If All Units Produced During March Are Sold, and There

question 38

Multiple Choice

If all units produced during March are sold, and there is no change in the number of units in the beginning finished goods inventory, then:

• A)income determined with absorption costing will equal income determined with direct costing.
• B)ending work in process inventory will increase with absorption costing.
• C)income determined with absorption costing will be higher than income determined with direct costing.
• D)ending finished goods inventory will increase.

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Definitions:

Electric Vehicles

Vehicles that are propelled by electric motors and batteries, rather than internal combustion engines, to minimize environmental impact.

Water Consumption

The amount of water used by individuals, industries, or agriculture, often measured to assess the sustainability and environmental impact of usage.

Energy Efficient

Refers to using less energy to perform the same task or produce the same outcome, reducing energy waste.

Thinner Packaging

Thinner packaging refers to the practice of reducing the material thickness and overall size of packaging to minimize waste and often to lower shipping costs, while still protecting the product.