Where the Fixed Overhead Rate in Both Opening and Closing

question 63

Multiple Choice

Where the fixed overhead rate in both opening and closing inventories is the same, which of the following statements is correct?

• A) If inventory remains the same, absorption costing profit will be greater than variable costing profit.
• B) If inventory has decreased, absorption costing profit will be greater than variable costing profit.
• C) Absorption costing profit is always greater than variable costing profit.
• D) If inventory has increased, absorption costing profit will be greater than variable costing profit.

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Definitions:

Serotonin

A neurotransmitter in the brain associated with regulating mood, anxiety, and happiness.

Epinephrine

A hormone and neurotransmitter also known as adrenaline, involved in the body's fight-or-flight response, increasing heart rate, and dilating airways.

Systolic Blood Pressure

The pressure in the arteries when the heart beats and fills them with blood.

Cardiac Output

The volume of blood pumped by the heart per minute.