Which of the Following Statements Is True About the Difference

question 48

Multiple Choice

Which of the following statements is true about the difference in operating income between variable costing and absorption costing if the number of units in work-in-process and finished goods inventories increase?

• A) There will be no difference in net income.
• B) Operating income computed using variable costing will be higher.
• C) The difference in operating income cannot be determined from the information given.
• D) Operating income computed using variable costing will be lower.

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Definitions:

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, ranging from approximately 380 to 750 nanometers in wavelength.

Opponent-process Theory

A theory of color vision and emotion that suggests certain emotions and perceptions are governed by opposing neurological processes.

Color Vision

The ability of the visual system to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.

Thomas Young

A British polymath who made significant contributions to various fields including physics, medicine, music, and Egyptology, notably in the study of light and vision.