If Kima Calculates Operating Income Under the Variable Costing Method

question 130

Multiple Choice

If Kima calculates operating income under the variable costing method as opposed to the absorption costing method, operating income will be

• A) $45,000 lower
• B) $270,000 lower
• C) $315,000 higher
• D) $270,000 higher

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Definitions:

Protein

Essential macronutrients made of amino acids, crucial for building and repairing tissues, producing enzymes and hormones, and supporting immune function.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life.

Protein

Essential molecules made up of amino acids that support muscle growth, repair, and overall body function.

Molecules

The smallest unit of a chemical compound that can take part in a chemical reaction, consisting of two or more atoms bonded together.