When production is greater than sales, the operating income will be higher under absorption costing than variable costing. Assume zero beginning and ending inventories. Which of the following gives the correct reason for the above statement?
A) All costs incurred have been recorded as expenses.
B) A portion of the fixed manufacturing overhead is still in the ending Finished Goods Inventory account under absorption costing.
C) All selling and administrative expenses have been recorded as period costs.
D) Fixed manufacturing costs have not been considered when calculating the operating profits.
B) A portion of the fixed manufacturing overhead is still in the ending Finished Goods Inventory account under absorption costing.
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a. a company's ability to extend credit to a customer b. the debtor's assets to secure debt c. the debtor's financial condition d. the debtor's reputation e. none of the other choices are correct
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Indicate whether the statement is true or false
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A) Accept the project B) Reject the project C) Evaluate criteria D) Proof of concept