Assume That the Predetermined Fixed Overhead Rate Per Unit Remains

question 9

Multiple Choice

Assume that the predetermined fixed overhead rate per unit remains the same from 2007 to 2008 and inventory decreases in 2008. Which of the following statements is true?

• A) The fixed overhead expended in 2008 under variable costing will be greater than that expended under absorption costing.
• B) The fixed overhead expended in 2008 under absorption costing will be greater than that expended under variable costing.
• C) The amount of fixed overhead expended will be the same under both methods.
• D) It is impossible to determine what effect the decrease in inventory will have on net profit under absorption costing.

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Definitions:

Delivery Cues

Nonverbal signals or notes used by a speaker to aid the presentation or delivery of a speech or message, ensuring key points are communicated effectively.

Numbered Cards

Cards sequentially labeled to organize information, facilitate easy retrieval, or guide an ordered presentation or process.

Nonlinear

Not proceeding in a straight line or sequential order, often referring to narratives or processes that jump around in time or topic.

Storytelling

The art of conveying messages, stories, or narratives through verbal or written form to entertain, educate, or convey morals.