Absorption Costing Operating Income Is Closer to the Operating Cash

question 133

True/False

Absorption costing operating income is closer to the operating cash flow of a period than is variable costing operating income.

---

Definitions:

Standard Construction Rule

In legal interpretation, this rule dictates that ambiguous contract terms should be construed against the drafter.

Prewritten Contract

A standardized legal document with set terms and language used in similar transactions, which is not specifically tailored to the needs of the parties involved in a particular deal.

Guarantor

An individual or entity that agrees to be responsible for another's debt or obligations in case of default.

Obligee

In contract law, the party to whom another party owes an obligation.