In Its First Year of Business,Greenlam Inc

question 30

Multiple Choice

In its first year of business,Greenlam Inc.produced and sold 600 units.If Greenlam uses variable costing,________.

• A)its operating profit for the period will be higher than absorption costing
• B)its operating profit for the period will be lower than absorption costing
• C)its value of ending inventory reported in the balance sheet will be higher than absorption costing
• D)its operating profit will be the same under absorption costing

---

Definitions:

Experimental Grasses

Grass varieties that are being tested or studied, often for their resistance to drought, disease, or their impact on ecosystems.

Mixed Numbers

Numbers consisting of an integer and a fraction combined, representing a whole plus a part.

Lowest Terms

A fraction simplified to its smallest possible numerator and denominator without changing its value.

Fractions

Mathematical expressions representing divisions of whole numbers, often used to describe parts of a whole.