Operating Profit Using Variable Costing Will Be ________ Than Operating

question 131

Multiple Choice

Operating profit using variable costing will be ________ than operating profit if using absorption costing.

• A)$2400 lower
• B)$2400 higher
• C)$3600 higher
• D)$900 lower

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Definitions:

Cholecystokinin

A hormone secreted by the small intestine that aids digestion by stimulating the gallbladder to release bile and the pancreas to secrete enzymes.

Bile

A substance created in the liver and stored in the gallbladder. Bile is a bitter, yellow-green fluid that is used in the digestion of fats.

Alimentary Canal

The digestive tract from the mouth to the anus, including all the organs involved in digestion and absorption.

Submucosa

The layer of the alimentary canal located between the mucosa and the muscular layer.