One Possible Means of Determining the Difference Between Absorption and Variable

question 91

Multiple Choice

One possible means of determining the difference between absorption and variable costing based operating incomes is

• A)to add fixed manufacturing cost to the variable costing operating income.
• B)by subtracting the variable overhead rate from the fixed overhead rate and then multiplying the difference by the number of units in inventory.
• C)by subtracting fixed manufacturing overhead in beginning inventory from fixed manufacturing overhead in ending inventory.
• D)by multiplying the number of units produced by the budgeted fixed manufacturing overhead rate.
• E)by adding fixed manufacturing overhead in beginning inventory to income.

Understand the relationship between total revenue, total profit, and output levels.

Recognize the impact of market entry and exit on industry prices and profits in the long run.

Differentiate between accounting profit and economic profit.

Describe the characteristics of a perfectly competitive market.

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Definitions:

Nonverbal Cues

Subtle signals, often unconscious, expressed through body language, facial expressions, and other nonverbal behaviors, indicating feelings or intentions.

Alert Tone

A sound or message that is designed to warn or inform individuals of important information.

Behavioral Interview

Interview in which you are asked to relate specific incidents and experiences from your past.

Behavioral Interview

A job interview technique where candidates are asked to describe past behavior as an indicator of their future performance.