Absorption Costing Profit Is Always Equal To

question 3

Multiple Choice

Absorption costing profit is always equal to:

• A) variable costing profit + fixed overhead in opening inventory - fixed overhead in closing inventory.
• B) fixed overhead in opening inventory + fixed overhead in closing inventory.
• C) fixed overhead in opening inventory - fixed overhead in closing inventory.
• D) variable costing profit + fixed overhead in closing inventory - fixed overhead in opening inventory.

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Definitions:

Shaping

A psychological conditioning technique where successive approximations of a desired behavior are reinforced.

Heuristic

A problem-solving approach using practical methods or shortcuts to generate solutions that are not guaranteed to be optimal.

Algorithm

A step-by-step procedure or formula for solving a problem or completing a task, often used in computing and mathematics.

Syllogism

A form of deductive reasoning consisting of a major premise, a minor premise, and a conclusion, used in logic to form arguments.