The Level of Inventory of a Manufactured Product Has Increased

question 93

Multiple Choice

The level of inventory of a manufactured product has increased by 4,000 units during a period.The following data are also available: ​
What would be the effect on income from operations if absorption costing is used rather than variable costing?

• A) $44,000 decrease
• B) $44,000 increase
• C) $64,000 increase
• D) $64,000 decrease

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Definitions:

Stock Classes

Different types of shares that a company can issue, each of which might have specific rights, privileges, or voting powers.

Capital Gains

The financial gain achieved when the selling price of an asset or investment surpasses its original buying price.

Appreciate

To increase in value or price over time.

Yield

Yield is the income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.