The Level of Inventory of a Manufactured Product Has Increased

question 12

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

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Definitions:

Unenforceable

A term describing a contract or clause that cannot be legally upheld or compelled by a court.

Writing

The process of using symbols, typically letters of the alphabet, to communicate thoughts and ideas in a readable form.

Court Waive

A judicial decision to relinquish or forego certain legal rights, fees, or penalties, often in the interest of justice or to facilitate legal processes.

Requirement Of Writing

A legal principle that certain types of contracts or agreements must be in writing to be enforceable.