A Company's Operating Income Recently Increased by 30% While Its

question 25

Multiple Choice

A company's operating income recently increased by 30% while its inventory increased in a given year. Which of the following accounting methods would produce the most favorable income results?

• A) Full costing.
• B) Direct costing.
• C) Variable costing.
• D) Standard direct costing.

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Definitions:

Different Behaviors

Variations in actions or reactions of individuals or groups in different situations.

Cultures

The growth of microorganisms, cells, or tissues in a specially prepared nutrient environment for study or diagnosis.

Tolerant

The ability or willingness to tolerate the existence of opinions or behavior that one does not necessarily agree with.

Mentally Disturbed

A term indicating that an individual may be experiencing disruptions in their mental health that affect their thinking, behavior, and emotions.