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:

Parietal Lobes

Regions of the brain located behind the frontal lobes, involved in processing sensory information related to taste, temperature, and touch, as well as spatial orientation and navigation.

Temporal

Related to time or indicative of the sequence in which events occur.

Visual Cortex

The part of the cerebral cortex involved in processing visual information, located in the occipital lobe of the brain.

Occipital Lobes

The visual processing center of the mammalian brain, located at the back of the head, which is responsible for interpreting visual information.