The Level of Inventory of a Manufactured Product Has Increased

question 94

Multiple Choice

The level of inventory of a manufactured product has increased by 8,000 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) $80,000 decrease
• B) $80,000 increase
• C) $104,000 decrease
• D) $104,000 increase

---

Definitions:

Intracellular Matrix

This is not a real key term. Intracellular components are usually referred to as cytoplasm or intracellular fluid; the term "extracellular matrix" refers to the substance surrounding cells. NO.

Tissue

Groups of similar cells and their extracellular matrix that work together to perform specific functions within organisms.

Neurons

The basic working units of the brain, specialized cells that transmit information to other nerve cells, muscle, or gland cells.

Nervous Tissue

Specialized tissue that forms the nervous system, consisting of neurons and supporting cells, critical for transmitting impulses throughout the body.