Groovelex Inc

question 110

Multiple Choice

Groovelex Inc.reports the following information: The beginning inventory costs $3,750 under absorption costing and $2,500 under variable costing.
What is the operating income using variable costing?

• A)$4,200
• B)$2,000
• C)$3,750
• D)$3,000

---

Definitions:

Asymmetric Anticline

A fold in sedimentary strata that is unequal in slope on both sides, often indicating a more complex deformation history.

Horizontal Syncline

A fold in sedimentary rock layers where the youngest materials are located at the center of the fold, typically indicating compression.

Dip-Slip Fault

A type of fault where the movement is mainly vertical, caused by the two sides moving up or down relative to each other.

Strike-Slip Fault

A type of fault where two blocks of the Earth's crust move horizontally past each other, parallel to the fault plane.