When All of the Units Produced Are Sold,the Operating Income

question 162

Multiple Choice

When all of the units produced are sold,the operating income is the same under both the absorption and variable costing methods.Assume no beginning and ending inventories.Which of the following gives the correct reason for the above statement?

• A) All costs incurred have been recorded as expenses.
• B) A portion of the fixed manufacturing overhead is still in the Finished Goods Inventory account.
• C) All selling and administrative expenses have been recorded as period costs.
• D) Fixed manufacturing costs have not been considered when calculating the operating incomes.

---

Definitions:

Johari Window

A model that describes different levels of knowledge in interpersonal relationships, involving four quadrants to help people better understand their relationship with themselves and others.

Self-Disclosure

The act of revealing personal information to others, which can foster intimacy and trust in relationships.

Gut Level

Referring to instinctive, immediate reactions or feelings, devoid of rational analysis.

Work Environments

The physical and psychological conditions under which employees perform their job duties, including culture, physical space, and social aspects.