The Level of Inventory of a Manufactured Product Has Increased

question 95

Multiple Choice

The level of inventory of a manufactured product has increased by 4,000 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) $44,000 decrease
• B) $44,000 increase
• C) $64,000 increase
• D) $64,000 decrease

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Definitions:

Simple Random Sample

A portion of a statistical group where every member has the same chance of selection.

Random

Lacking pattern, purpose, or predictability, often used in the context of selecting items or events in a way that each has an equal chance of being chosen.

Average Age

The mean value of the ages of individuals in a particular group, calculated by summing their ages and dividing by the number of individuals.

Sampling Frame

The list or database from which a sample is drawn for a study, containing all the elements that define the population.