The Level of Inventory of a Manufactured Product Has Increased

question 81

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

---

Definitions:

Algonquians

A group of Native American peoples speaking Algonquian languages, originally inhabiting areas of North America from the Atlantic coast to the Great Lakes region.

Metacom

A Native American leader, also known as King Philip, who led a major rebellion against the colonists in New England in the 17th century.

Dominion of Virginia

Refers to the English colonial possession in North America that existed from 1607 (with the founding of Jamestown) until the American Revolution, known for its role in the development of American democracy and plantation economy.

James II

King of England, Scotland, and Ireland who reigned from 1685 to 1688, his policies of religious tolerance toward Catholics led to the Glorious Revolution, which resulted in his deposition and the establishment of constitutional monarchy in Britain.