Which of the Following Statements Is True

question 73

Multiple Choice

Which of the following statements is true?

• A) Under absorption costing some fixed manufacturing costs are deferred in ending inventory if production is lower than sales.
• B) When production and sales are equal, net income will be greater under variable costing than it will be under absorption costing.
• C) Under absorption costing only the fixed manufacturing costs associated with inventory produced are expensed.
• D) Under variable costing fixed manufacturing costs are expensed in the period in which they are incurred regardless of when the inventory is sold.

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Definitions:

Experimental Results

The data and outcomes obtained from conducting scientific experiments.

Chloroplasts

Organelles found in plant cells and some algae that conduct photosynthesis, converting light energy into sugar.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, producing oxygen as a byproduct.

Stroma

Region within a chloroplast that surrounds the grana; contains enzymes involved in the synthesis of carbohydrates during the Calvin cycle of photosynthesis.