The Level of Inventory of a Manufactured Product Has Increased

question 35

Multiple Choice

The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available: The effect on operating income if absorption costing is used rather than variable costing would be a

• A)$42,000 decrease
• B)$42,000 increase
• C)$52,500 increase
• D)$52,500 decrease

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Definitions:

Relative Size

Relative size is a visual perception cue where the size of an object, when compared with another, helps determine depth or distance in a two-dimensional representation.

Timbre

The quality of a musical note, sound, or tone that distinguishes different types of sound production, such as voices or musical instruments.

Purity

The condition of being free from contaminants or pollutants; often used metaphorically to signify moral or ethical cleanliness.

Amplitude

The height or strength of a wave signal, often used in reference to sound or electromagnetic waves.