Answer the Following Questions Using the Information Below

question 93

Multiple Choice

Answer the following questions using the information below:
Stiller Corporation incurred fixed manufacturing costs of $12,000 during 2011. Other information for 2011 includes:
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
-Operating income using absorption costing will be ________ than operating income if using variable costing.

• A)$4,800 higher
• B)$4,800 lower
• C)$1,800 higher
• D)$7,200 lower

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Definitions:

Myelin Sheath

A fatty layer that surrounds the axons of some neurons, enhancing the speed of electrical signal transmission.

Node of Ranvier

A gap in the myelin sheath of a nerve fiber that facilitates rapid conduction of nerve impulses along the axon through saltatory conduction.

Convergence

The process or phenomenon where two or more separate species evolve similar traits independently, often due to similar environmental pressures.

Divergence

The process by which two or more related species become more different over time, often due to different environments or lifestyles.