The Level of Inventory of a Manufactured Product Has Increased

question 115

Multiple Choice

The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: The effect on operating income if variable costing is used rather than absorption costing would be a

• A)$50,000 decrease
• B)$50,000 increase
• C)$65,000 increase
• D)$65,000 decrease

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Definitions:

Electrode

A conductor through which electricity enters or leaves an object, substance, or region, often used in medical devices or for measuring electrical activity in the body.

ECG

Electrocardiogram, a test that measures the electrical activity of the heart to detect heart problems and monitor heart health.

Color Code

A system of organizing and identifying items using different colors for ease of recognition.

Electrode

A conductor through which electricity enters or leaves an object, substance, or region, used in various applications like batteries or medical devices.