When Production Exceeds Sales and the Company Uses the LIFO

question 217

Multiple Choice

When production exceeds sales and the company uses the LIFO inventory flow assumption, the net operating income reported under absorption costing generally will be:

• A)less than net operating income reported under variable costing.
• B)greater than net operating income reported under variable costing.
• C)equal to net operating income reported under variable costing.
• D)higher or lower because no generalization can be made.

---

Definitions:

Muscle Tension

The state of being contracted or tense in the muscles, often as a response to stress or physical activity, leading to discomfort or pain.

Minnesota Multiphasic Personality Inventory

A comprehensive psychological test used to assess personality traits and psychopathology.

California Personality Inventory

A psychological assessment tool used to evaluate interpersonal behavior and social interaction.

Personality Inventory

A questionnaire or assessment tool used to evaluate the personality traits and characteristics of an individual.