Variable Costing Net Income Does Not Equal Absorption Costing Net

question 53

Multiple Choice

Variable costing net income does not equal absorption costing net income due to ________.

• A) variable selling costs
• B) variable manufacturing overhead costs
• C) fixed manufacturing overhead costs
• D) variable and fixed manufacturing overhead costs

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Definitions:

Retrieval

Retrieving and elevating stored information into one's consciousness from memory.

Encoding

The process by which information is transformed into a format that can be stored in memory, an initial step in the creation of a memory trace.

Storage

The retention of encoded information over time in memory.

Encoding

The act of transforming data so it can be retained in memory storage.