S&P Enterprises Sold 10,000 Units of Inventory During a Given

question 118

Multiple Choice

S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory of a manufactured product remained unchanged. The manufacturing costs were as follows: Which of the following statements is true?

• A) Net income will be the same under both variable and absorption costing.
• B) Net income under variable costing will be $45,000 less than net income under absorption costing
• C) Net income under absorption costing will be $40,000 more than under variable costing.
• D) The difference in net income cannot be determined.

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Definitions:

Anal Fissure

A small tear in the lining of the anus, often causing pain and bleeding during bowel movements.

Sentinel Pile

A skin tag or small lump that develops at the edge of an anal fissure, often serving as a sign of underlying anal or rectal issues.

Collecting Area

A designated space or container used for gathering specimens or materials for analysis or disposal.

Digestion

The process by which food is broken down, mechanically and chemically, in the gastrointestinal tract and converted into absorbable forms.