Rubble Ltd Develops an Annual Overhead Budget at the Start

question 39

Multiple Choice

Rubble Ltd develops an annual overhead budget at the start of each year (which has remained unchanged for the last 2 years) , and closes any over- or underapplied overhead at year-end. For the firm's single product the following ending inventory levels have been experienced during the last 7 months: In how many months would variable costing profit be equal to absorption costing profit?

• A) 0
• B) 1
• C) 2
• D) 3

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Definitions:

Socially Desirable

Pertains to behaviors or responses that are seen as favorable by society and are thus more likely to be expressed by individuals.

Social Desirability Bias

The tendency of survey respondents to answer questions in a manner that will be viewed favorably by others.

Socially Approved

Regarded or accepted by society as being correct, appropriate, or beneficial.

Selfish Manner

Acting with concern for one's own welfare or advantage at the expense of or without regard for others.