The Level of Inventory of a Manufactured Product Has Increased

question 42

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: What would be the effect on income from operations if absorption costing is used rather than variable costing?

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

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Definitions:

Informal Acknowledgement

Recognition or appreciation of an individual's efforts or achievements in a casual, non-official manner.

Peer Recognition

The acknowledgment and appreciation of an individual's work or achievements by their colleagues and peers, often serving as a motivational tool.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable condition strengthens a behavior.

Behaviour Occurring

The manifestation of actions or reactions of an individual in specific situations.