Use the Information Below to Answer the Following Question(s)

question 57

Multiple Choice

Use the information below to answer the following question(s) .Urban Body Products Ltd.manufactures body wash liquid soap.The controller has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs. There were no beginning or ending inventories of materials or work-in-process.
-Which of the following is correct concerning variable vs absorption costing?

• A)Absorption costing income statement classifies fixed costs as period costs.
• B)The absorption costing income statement combines costs by cost behaviour.
• C)Absorption costing income statements need to differentiate between variable and fixed costs.
• D)The difference in operating income between the two approaches is captured by the difference between fixed manufacturing costs in ending inventory minus fixed manufacturing costs in opening inventory.
• E)The difference in operating income between the two approaches is captured by the difference between fixed manufacturing costs in ending inventory minus variable manufacturing costs in ending inventory.

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Definitions:

Empowering Employees

The practice of giving employees autonomy, authority, and encouragement to make decisions and take actions that positively impact the company.

Empowerment

The process of enabling individuals or groups to take control of their circumstances and achieve their own goals, often leading to increased autonomy and self-determination.

Delivery Gap

The difference between the service quality a company promises to deliver and the actual service quality delivered to customers.

Customer

An individual or entity that purchases goods or services from a business.