S&P Enterprises Sold 10,000 Units of Inventory During a Given

question 7

Multiple Choice

S&P Enterprises sold 10,000 units of inventory during a given period.The level of inventory of the manufactured product remained unchanged.The manufacturing costs were as follows: ​
Which of the following statements is true?

• A) Net income will be the same under both variable and absorption costing.
• B) Net income under variable costing will be $45,000 less than net income under absorption costing
• C) Net income under absorption costing will be $40,000 more than under variable costing.
• D) The difference in net income cannot be determined.

---

Definitions:

Reinforcement

In psychology and management, a strategy of encouraging a desired behavior by presenting a positive stimulus following that behavior.

Desired Behaviour

The specific actions or reactions that an individual or organization aims to elicit from others, often through guidance, incentive, or training.

Positive Reinforcement

The process of encouraging or increasing a behavior by presenting a favorable outcome or reward upon the occurrence of the behavior.

Inventory Of Rewards

A catalog or list of rewards and incentives available within an organization, intended to motivate and acknowledge employee contributions.