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:

Openness to Experience

A personality trait characterized by a willingness to try new experiences, engage in imaginative activities, and openness to different ideas, values, and feelings.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, irritability, and sadness.

Cross-Situational Consistency

The extent to which an individual's behavior and reactions are stable across different contexts and situations.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.