What Factor Related to Manufacturing Costs Causes the Difference Between

question 107

Multiple Choice

What factor related to manufacturing costs causes the difference between operating income computed using absorption costing and operating income computed using variable costing?

• A)Absorption costing expenses all costs, whether fixed or variable.
• B)Absorption costing "inventories" all direct manufacturing costs.
• C)Absorption costing "inventories" all fixed manufacturing costs.
• D)Absorption costing "inventories" all fixed manufacturing and period costs.

---

Definitions:

Tip-of-the-Tongue Phenomenon

A psychological phenomenon where a person is unable to recall a familiar word or name, despite feeling that it is just out of reach.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Repression

A defense mechanism in psychoanalytic theory where unpleasant or traumatic memories are unconsciously excluded from conscious thought.

Decay

The process of gradual deterioration or the breakdown of organic matter, or, in terms of memory, the fading of information over time when it is not actively maintained or rehearsed.