If a Company Uses Standard Absorption Costing, How Could a Business

question 165

Multiple Choice

If a company uses standard absorption costing, how could a business manager exploit that accounting method in order to boost book income without violating the rules of GAAP?

• A)By adopting just-in-time inventory management, the manager could reduce the costs of financing and storing inventory, which would in turn, help boost book income.
• B)By coding administrative costs to inventory, the manager could report lower total expenses and thus report higher income.
• C)By reducing inventory levels, the manager could show higher sales revenues, and thus report higher book income.
• D)By building up inventory levels, fixed manufacturing costs could be "stored up" in ending inventory, the cost of goods sold would be lower, and book income would be higher.

Describe the principles of reinforcement schedules and their effects on behavior in operant conditioning.

Identify and distinguish between different types of reinforcements and their applications in shaping behavior.

Recognize the role and application of stimulus control in both operant and classical conditioning.

Understand higher order conditioning and its implications for complex behavior learning.

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Definitions:

Stimulate New Thinking

Encouraging the generation of new ideas or innovative approaches to address problems or challenges.

Learning Experiences

These are activities or situations that provide opportunities for acquiring new knowledge, skills, attitudes, or values.

Ethical Conflicts

Situations where individuals face choices that contradict their ethical standards or principles, leading to moral dilemmas.

Ethical Decision

A choice that reflects a commitment to do what is right and fair, based on ethical principles and values.