For the Month Referred to Above, Net Operating Income Under

question 44

Multiple Choice

For the month referred to above, net operating income under variable costing will be:

• A)higher than net operating income under absorption costing.
• B)lower than net operating income under absorption costing.
• C)the same as net operating income under absorption costing.
• D)The relation between variable costing and absorption costing net operating income cannot be determineD.Since production exceeds sales, the net operating income for variable costing will be lower than for absorption costing.This occurs because under absorption costing, some of the fixed manufacturing overhead cost is deferred in ending inventories.

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Definitions:

Endotracheal Tube

A tube placed through the mouth into the trachea to establish and maintain an airway during mechanical ventilation.

Supine Position

Lying on the back with the face upward; a common position for patients in medical settings.

Suction Equipment

Medical devices used to remove substances such as blood, saliva, mucus, and vomit from a person's airway or respiratory tract.

Oxygen Source

A supply system or device that delivers oxygen to patients requiring respiratory support, such as an oxygen cylinder or concentrator.