Use the Information Below to Answer the Following Question(s)

question 57

Multiple Choice

Use the information below to answer the following question(s) .Urban Body Products Ltd.manufactures body wash liquid soap.The controller has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs. There were no beginning or ending inventories of materials or work-in-process.
-Which of the following is correct concerning variable vs absorption costing?

• A)Absorption costing income statement classifies fixed costs as period costs.
• B)The absorption costing income statement combines costs by cost behaviour.
• C)Absorption costing income statements need to differentiate between variable and fixed costs.
• D)The difference in operating income between the two approaches is captured by the difference between fixed manufacturing costs in ending inventory minus fixed manufacturing costs in opening inventory.
• E)The difference in operating income between the two approaches is captured by the difference between fixed manufacturing costs in ending inventory minus variable manufacturing costs in ending inventory.

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Definitions:

Primary Spermatocyte

A diploid cell in the testes that undergoes the first division of meiosis to produce two secondary spermatocytes.

Meiotic Division

A type of cell division that reduces the chromosome number by half, resulting in the production of gametes or spores.

Spermatic Cord

This is a bundle of fibers and tissues that run from the abdomen to the testes, containing blood vessels, nerves, and the vas deferens.

Ductus Deferens

A conduit that transports sperm from the epididymis to the ejaculatory ducts within the male reproductive system.