Inventory Values Calculated Using Variable Costing as Opposed to Absorption

question 5

Multiple Choice

Inventory values calculated using variable costing as opposed to absorption costing will generally be

• A)equal.
• B)less.
• C)greater.
• D)twice as much.

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Definitions:

Ledger

A comprehensive collection of accounts that records all financial transactions of a business, organized to show the financial status and activities.

Account Number

An account number is a unique identifier assigned to an account held by a bank, financial institution, or service provider to differentiate it from other accounts.

Assets

Assets are resources owned or controlled by a business, expected to produce economic value or future benefits.

Debits

Accounting entries that increase assets or expenses or decrease liabilities, equity, or net worth in a company's balance sheet.