Consider the Following Statements Regarding Absorption Costing and Variable Costing

question 75

Multiple Choice

Consider the following statements regarding absorption costing and variable costing.i.Profit reported under absorption costing for a year will likely differ from that reported under variable costing because production and sales differ
Ii) Total profit when added together over a ten-year period will be approximately equal under absorption costing and variable costing because production and sales will be approximately the same.
Iii) Total profit when added together over a ten-year period will be significantly different under absorption and variable costing because fixed costs will generally increase significantly over that long.Which statement/s is/are true?

• A) i
• B) i and ii
• C) i and iii
• D) ii

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Definitions:

Acetylcholine

A neurotransmitter important for learning and memory, as well as muscle contraction, involved in many functions across the nervous system.

Blocks Receptors

Refers to substances or mechanisms that inhibit the action of neurotransmitters by occupying their receptor sites and preventing activation.

Agonist

A chemical or drug that binds to receptors in the brain and causes a reaction or response similar to a naturally occurring substance.

Antagonist

A molecule that binds to a receptor but does not activate it, thereby blocking action of agonist molecules or inhibiting the function of an enzyme.