Which Costing Method (Variable or Absorption) Will Generate a Higher

question 168

Multiple Choice

Which costing method (variable or absorption) will generate a higher net operating income in Cutterski's first year of operations and by how much?

• A)variable by $81,000
• B)variable by $108,000
• C)absorption by $81,000
• D)absorption by $108,000

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Definitions:

Slaveholding Border States

Refers to the U.S. states on the border between the North and South that permitted slavery during the Civil War but did not secede from the Union.

Radical Republicans

A faction of American politicians within the Republican Party of the United States from about 1854 until the end of Reconstruction in 1877, who believed in the immediate emancipation of the slaves and harsh repercussions for the Southern states.

Emancipation Proclamation

Declaration issued by President Abraham Lincoln; the preliminary proclamation on September 22, 1862, freed the slaves in areas under Confederate control as of January 1, 1863, the date of the final proclamation, which also authorized the enrollment of black soldiers into the Union army.