Under Absorption Costing When Production Equals Sales in a Year

question 30

Multiple Choice

Under absorption costing when production equals sales in a year

• A)Inventory values and cost of goods sold are higher than under variable costing.
• B)Inventory values and cost of goods sold are lower than under variable costing.
• C)Inventory values and cost of goods sold are the same as under variable costing.
• D)Inventory values are higher and cost of goods sold is lower than under variable costing.

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Definitions:

Raw Sewage

Untreated, unfiltered wastewater containing contaminants such as human waste, industrial runoff, and debris, requiring treatment before being released into the environment.

Shellfish Contamination

refers to the pollution or harmful contamination of shellfish (such as oysters, clams, and mussels) by pollutants including chemicals, heavy metals, and pathogenic microorganisms which can render them unsafe for human consumption.

Respiratory Irritation

The discomfort or inflammation of the respiratory tract, often caused by pollutants, allergens, or pathogens, leading to symptoms like coughing or difficulty breathing.

Excess Nitrogen

An overabundance of nitrogen in the environment, often resulting from agricultural fertilizers, which can lead to water pollution and ecosystem imbalances.