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:

Localization

Adapting pay and other compensation benefits to match those of a particular country.

Balance Sheet Approach

A method used in international human resources that is focused on equalizing the cost differences for employees on international assignments to ensure their purchasing power is maintained across different countries.

Repatriation Plan

A strategy designed to assist employees in transitioning back to their home country after completing an international assignment.

Career Positions

Employment roles that offer a path of progression, often requiring specific skills and offering long-term employment.