The Southern Corporation Manufactures a Single Product and Has the Following

question 134

Multiple Choice

The Southern Corporation manufactures a single product and has the following cost structure:
Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning inventory.
-The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:

• A) the same as absorption costing.
• B) $6,800 greater than under absorption costing.
• C) $6,800 less than under absorption costing.
• D) $4,000 less than under absorption costing.

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Definitions:

Slope

The slope represents the rate of change between two variables on a graph, indicating how much one variable changes for a unit change in another variable.

Criterion Variable

The dependent variable in a study that is predicted or explained by the independent variable(s).

Predictor Variable

An independent variable in statistical models that is used to predict or explain changes in the dependent variable (response variable).

Nominal Variable

A nominal variable is a type of categorical variable for which there is no natural ordering among the categories.