If the Unit Level of Inventory Increases During an Accounting

question 144

Multiple Choice

If the unit level of inventory increases during an accounting period,then:

• A)operating profit will be the same under absorption costing and variable costing.
• B)more operating profit will be reported under absorption costing than variable costing.
• C)less operating profit will be reported under absorption costing than variable costing.
• D)the exact effect on operating profit cannot be determined.

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Definitions:

Biological Survival

The basic processes and functions necessary for an organism to live, including obtaining food, reproducing, and avoiding predators.

Grasping Reflex

An involuntary movement response in which an infant's fingers close around an object placed in their hand.

Voluntary Grasping

A deliberate and controlled act of seizing or holding objects, which is a developmental milestone in infants.

Phonemes

A language's tiniest sound piece that can distinguish between words.