When All of the Units Produced Are Sold,the Operating Income

question 106

Multiple Choice

When all of the units produced are sold,the operating income will be the same under both the costing methods.(Assume no beginning inventories.) Which of the following gives the correct reason for the above statement?

• A)all costs incurred have been recorded as expenses
• B)a portion of the fixed manufacturing overhead is still in the Finished Goods Inventory account
• C)all selling and administrative expenses have been recorded as period costs
• D)fixed manufacturing costs have not been considered while calculating the operating profits

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Definitions:

White Primary

A practice that arose in the American South whereby only white citizens were allowed to vote in primary elections, effectively disenfranchising African Americans.

African Americans

A racial or ethnic group in the United States with ancestry from the black racial groups of Africa.

Poll Tax

A poll tax is a fixed fee charged by governments on individuals as a precondition for the right to vote, historically used to disenfranchise minority and low-income groups.

African Americans

In the United States, a group identified by their heritage from African black racial groups.