In General, If Inventory Increases During an Accounting Period

question 60

Multiple Choice

In general, if inventory increases during an accounting period,

• A)variable costing will report less operating income than absorption costing.
• B)absorption costing will report less operating income than variable costing.
• C)variable costing and absorption costing will report the same operating income.
• D)None of the above are correct.

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Definitions:

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, rules, and laws.

Pre-Conventional

A stage in Kohlberg's theory of moral development where moral understanding is based on rewards and punishments.

Conventional

Adhering to accepted standards and practices; typical or traditional in nature.

Post-Conventional

A stage of moral development in which the individual's sense of morality is defined in terms of more abstract principles and values that apply to all situations and societies.