Which of the Following Statements Is True

question 110

Multiple Choice

Which of the following statements is true?

• A) Expenses are not usually separated into variable and fixed elements in externally reported income statements.
• B) Even if there is no change in units sold, selling price, or cost structure, a company can increase its absorption costing net operating income from one year to the next just by producing more units.
• C) When finished goods inventory decreases during a period, a manufacturing company's absorption costing net operating income for that period will usually be greater than its variable costing net operating income.
• D) Both A and B above.

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Definitions:

Hoechst Celanese

Hoechst Celanese is a division of Celanese Corporation, a global technology and specialty materials company originally formed as a part of the German chemical company Hoechst AG before restructuring and divestment.

Work Force

The collective group of individuals engaged in employment within an organization or economy.

Diversity

The practice or quality of including or involving people from a range of different social and ethnic backgrounds and of different genders, sexual orientations, etc.

Global Automobile Market

The international sector involving the manufacturing, distribution, and sale of motor vehicles.