In General, If Inventory Increases During an Accounting Period, ________

question 10

Multiple Choice

In general, if inventory increases during an accounting period, ________.

• A) variable costing will report less operating income than absorption costing
• B) absorption costing will report less operating income than variable costing
• C) variable costing and absorption costing will report the same operating income
• D) both variable costing and absorption costing will show losses

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Definitions:

Fractures

Breaks or cracks in rock which can occur naturally through geological processes or artificially through human activity.

Cleavage

In geology, this refers to the tendency of crystalline materials to split along definite crystalline boundaries, often parallel to planes of weakness in their structure.

Cleavage Planes

Natural planes of weakness along which minerals preferentially break, reflecting their crystallographic structure.

Asbestos

A general name for the fibrous varieties of a number of silicate minerals whose common characteristic is that they tend to form fibers.