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

---

Definitions:

Macroeconomic Statistics

Quantitative measures that capture various aspects of a national economy’s performance, such as GDP, unemployment rates, and inflation, aiding in its analysis and policy formulation.

Macroeconomic Statistics

Quantitative measures that describe the broad economic activities and health of a country, including GDP, inflation rates, and unemployment figures.

Economic Contraction

A decline in the national output as measured by GDP, often associated with a decrease in spending and investment.

Disposable Personal Income

The amount of money that individuals have available to spend and save after income taxes have been accounted for.