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:

Conservation

Understanding that physical properties do not change when appearance changes, crucial in cognitive development, repeating definition with emphasis on its role in cognitive science.

Preoperational Stage

A phase in Jean Piaget's cognitive development theory where children from ages 2 to 7 engage in symbolic play and struggle with logic and taking the perspective of others.

Three Mountains Task

A cognitive development test designed by Jean Piaget to assess children's ability to understand and appreciate different perspectives and viewpoints.

Formal-Operational Thought

The final stage in Piaget's theory of cognitive development, characterized by the ability to think abstractly and logically.