The Level of Inventory of a Manufactured Product Has Increased

question 74

Multiple Choice

The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available: What would be the effect on income from operations if absorption costing is used rather than variable costing?

• A) $80,000 decrease
• B) $80,000 increase
• C) $104,000 increase
• D) $104,000 decrease

---

Definitions:

Blind Spot

An area in the visual field that lacks photoreceptor cells because it is where the optic nerve exits the eye, leading to a gap in visual information.

Optic Nerve

A duo of nerves responsible for carrying visual data from the retina directly to the brain.

Retina

The light-sensitive layer of tissue at the back of the eye that is responsible for processing visual information.

Blind Spots

Areas in a person’s field of vision where no vision is possible, usually due to the lack of light-detecting photoreceptor cells on the optic disc of the retina.