If Fixed Overhead Cost Variances Are Always Written Off to Cost

question 131

True/False

If fixed overhead cost variances are always written off to Cost of Goods Sold, operating income can be manipulated for either financial reporting or income tax purposes.

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Definitions:

Social Identity Theory

A psychological theory that posits individuals derive part of their self-concept from their perceived membership in a relevant social group, influencing their behavior and attitudes.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.

Non-Verbal Cues

Forms of communication without words, such as gestures, facial expressions, posture, and tone of voice, which can convey a wide range of messages.

Self-Fulfilling Prophecy

A psychological phenomenon whereby an individual's or group's belief or expectation brings about its own realization, influencing their behavior to make the prediction come true.