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

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Definitions:

Encounter

A meeting or experience with someone or something, especially one that is unexpected or significant.

Get Hurt

Experiencing physical pain or injury, or emotional distress as a result of an action, event, or situation.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses or anxiety through controlled exposure to the feared object or situation paired with relaxation exercises.

Group Therapy

A form of psychotherapy involving one or more therapists treating a small group of clients together.