Frittata,Inc

question 178

Multiple Choice

Frittata,Inc.started the year with 200 units in the Finished Goods Inventory account.It produced 600 units during the year and sold 800 units.If Frittata uses variable costing,________.

• A) its operating income for the period will be higher than under absorption costing
• B) its operating income for the period will be lower than under absorption costing
• C) its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing
• D) its operating income will be the same as under absorption costing

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Definitions:

Environmental Laws

Statutes and regulations aimed at protecting the environment from harm caused by human activities, covering areas such as air and water pollution, waste management, and conservation.

Organisational Transparency

The extent to which an organization openly shares its operations, decisions, and business practices to its stakeholders.

Environmental Management Systems

A framework that helps organizations manage their environmental responsibilities and impacts in a systematic and sustainable manner.

ISO 14004

A standard providing guidance on the establishment, maintenance, and improvement of an environmental management system, complementing the ISO 14001 standard.