What Factor Related to Manufacturing Costs Causes the Difference in Operating

question 249

Multiple Choice

What factor related to manufacturing costs causes the difference in operating income computed using absorption costing and operating income computed using variable costing?

• A) Absorption costing expenses all costs, whether fixed or variable.
• B) Absorption costing "inventories" include all direct manufacturing costs.
• C) Absorption costing "inventories" include all fixed manufacturing and period costs.
• D) Absorption costing "inventories" include all fixed manufacturing costs.

---

Definitions:

PDLC

Stands for Project Development Life Cycle, which outlines the stages involved in developing a project from its inception to its completion.

PDLC

Product Development Life Cycle: The process of bringing a new product from concept through to market launch, involving stages such as ideation, design, development, and testing.

Debugging

The process of running a program over and over to find and repair errors and to make sure the program behaves in the way it should.

Algorithm Development

The process of creating a step-by-step procedure or formula for solving a problem, often used in programming and mathematics.