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:

Sufficient Condition

A condition or set of conditions that will ensure the occurrence of a particular outcome.

Sufficient Condition

A condition or set of conditions that guarantees the occurrence or the truth of something else but is not always necessary for it to happen.

Electoral College

A body of electors established by the United States Constitution, tasked with electing the president and vice president of the country.

Disconfirming Instances

Instances or examples that challenge or falsify a hypothesis or theory.