When Comparing the Operating Incomes Between Absorption Costing and Variable

question 101

Multiple Choice

When comparing the operating incomes between absorption costing and variable costing, and ending finished inventory exceeds beginning finished inventory, it may be assumed that ________.

• A) sales decreased during the period
• B) variable cost per unit is more than fixed cost per unit
• C) there is a favorable production-volume variance
• D) absorption costing operating income exceeds variable costing operating income

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Definitions:

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Large structures used in offshore drilling to explore for and extract oil and gas from beneath the seabed.

Need-Satisfaction

A sales method focusing on identifying and meeting the specific needs of the customer.

Transactional

Pertaining to the process of conducting business or commercial transactions, often emphasizing the exchange of goods, services, or funds.

Need-Satisfaction Sales Presentation

A sales approach where the salesperson identifies and provides solutions to a customer's needs, enhancing satisfaction and persuading the purchase.