Answer the Following Question(s)using the Information Below

question 133

Multiple Choice

Answer the following question(s) using the information below.Heinrich Corporation budgeted fixed manufacturing costs of $6,000 during 2012.Other information for 2012 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.
-Which of the following is an example of a drawback of using absorption costing?

• A)It allows management the ability to manipulate operating income via production schedules.
• B)An inventoried cost will eventually become part of cost of goods sold.
• C)The company's sales level drives the production schedules.
• D)A manager may increase maintenance activities above the budgeted level for the current period.
• E)Expensing fixed costs as period costs reducing operating income.

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Action Catalog

A list or repository of predefined actions or commands that can be executed within a software application or programming environment.

Expand

A command or action that enlarges a window, section, or view to reveal more content or detail.

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A feature in software that allows users to reduce a section of content or a panel to a smaller size to hide details, often symbolized by a minus (-) icon.

Actions

In the context of software, predefined operations or commands that can be executed by the system, an application, or the user to perform specific tasks.