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Operating Income Reported on the End-Of-Period Financial Statements Is Changed

Question 160

Multiple Choice

Operating income reported on the end-of-period financial statements is changed when ________ is used to handle the production-volume variance at the end of the accounting period.


A) the adjusted allocation-rate approach
B) the proration approach
C) the write-off variances to cost of goods sold approach
D) the reinstatement approach

Correct Answer:

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