A Decrease in Inventory Levels Will Cause Which of the Following

question 100

Multiple Choice

A decrease in inventory levels will cause which of the following when comparing operating income under absorption and variable costing?

• A) The same operating income under both variable costing and absorption costing
• B) A higher operating income under variable costing
• C) A lower operating income under variable costing
• D) A lower cost of goods sold and a higher operating income under absorption costing

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Definitions:

Nonverbal

Communication without using spoken language, including gestures, facial expressions, body language, and other visual cues.

Transactional Model

A communication framework suggesting that interactions are simultaneous and reciprocal among communicators.

Stimulated

The state of being aroused, activated, or energized by external or internal factors.

Motivated

Having a driving desire or willingness to take action towards a goal or objective.