There Is No Difference Between Variable-Costing Operating Income and Absorption-Costing

question 55

Multiple Choice

There is no difference between variable-costing operating income and absorption-costing operating income if there is no ________.

• A) beginning inventory of finished goods
• B) ending inventory of finished goods
• C) variable overhead costs
• D) change in finished goods inventory during the period

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Definitions:

Optimal Risky Portfolio

An optimal risky portfolio is a collection of financial assets that maximizes expected return for a given level of risk or minimizes risk for a given level of expected return.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scatter plot.

Correlation Coefficient

A statistical measure that calculates the strength of the relationship between the relative movements of two variables.

Standard Deviation

A measure of the dispersion or variability of a set of data points or investment returns, indicating the degree of risk.