The Level of Inventory of a Manufactured Product Has Increased

question 129

Multiple Choice

The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available: What would be the effect on income from operations if absorption costing is used rather than variable costing?

• A) $42,000 decrease
• B) $42,000 increase
• C) $52,500 increase
• D) $52,500 decrease

---

Definitions:

Social Skills

Pertains to the abilities required to communicate, interact, and build relationships with others effectively.

Humans

Members of the species Homo sapiens, characterized by bipedalism, high brain capacity for abstract reasoning, communication, and tool use.

Primates

The mammalian order encompassing humans, apes, monkeys, and prosimians, characterized by large brains, forward-facing eyes, and complex social behaviors.

Social Perspective

A viewpoint that focuses on the behavior of individuals as influenced by the social structures and cultural norms within which they operate.