One Possible Means of Determining the Difference Between Operating Incomes

question 2

Multiple Choice

One possible means of determining the difference between operating incomes for absorption costing and variable costing is by ________.

• A) subtracting sales of the previous period from sales of this period
• B) subtracting fixed manufacturing overhead in beginning inventory from fixed manufacturing overhead in ending inventory
• C) multiplying the number of units produced by the budgeted fixed manufacturing cost rate
• D) adding fixed manufacturing costs to the production-volume variance

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Definitions:

Neurotransmitters

Chemical agents facilitating signal transmission from one neuron to another via synapses in the nervous system.

Conditioning

A process of behavior modification by which a subject comes to respond in a desired manner to a previously neutral stimulus by associating it with a stimulus that elicits an automatic response.

Electric Shocks

A form of electrical stimulation applied to certain parts of the body, used in various scientific and medical procedures, sometimes for therapeutic purposes.

Apprehensive

Feeling anxious or fearful that something bad or unpleasant will happen.