When Comparing the Operating Incomes Between Absorption Costing and Variable

question 101

Multiple Choice

When comparing the operating incomes between absorption costing and variable costing, and ending finished inventory exceeds beginning finished inventory, it may be assumed that ________.

• A) sales decreased during the period
• B) variable cost per unit is more than fixed cost per unit
• C) there is a favorable production-volume variance
• D) absorption costing operating income exceeds variable costing operating income

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Definitions:

Company Culture

The shared values, beliefs, and practices that characterize an organization and influence its employees' behavior and attitudes.

Core Values

Fundamental beliefs or principles that are considered inherently important by an organization, guiding its behavior and decision-making.

Long-Term Benefit

Advantages or gains that accrue over a extended period of time, often seen as a result of strategic planning or investments.

Human Resource Management

The strategic approach to the effective management of an organization's workers so that they help the business gain a competitive advantage, including recruitment, training, and employee development strategies.