The Level of Inventory of a Manufactured Product Has Increased

question 117

Multiple Choice

The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: What would be the effect on income from operations if variable costing is used rather than absorption costing?

• A) $50,000 decrease
• B) $50,000 increase
• C) $65,000 increase
• D) $65,000 decrease

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Definitions:

Nonindustrialized Country

A nation with a less developed industrial base and a lower Human Development Index compared to other countries.

Facial Expressions

The configurations and movements of facial muscles that convey emotions, intentions, or social information.

Nonverbal Cues

Forms of communication that do not involve words, such as body language, facial expressions, and gestures.

Emotional Facial Expressions

Observable expressions of emotions through facial movements, which can convey information about an individual's emotional state.