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Managerial Accounting (SAYA-0009) Exam

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Managerial Accounting (SAYA-0009) Exam Questions and Answers

Questions 1

SJ Candles should expect the absorption costing and variable costing methods to result in the same 4th quarter operating profit when which of the following is true?

Options:

A.  

They sold all remaining 3rd quarter inventory in 4th quarter and produced zero candles in 4th quarter

B.  

They started the 4th quarter with no inventory and every candle that was produced in the 4th quarter also sold

C.  

They started the 4th quarter with no inventory and sold 80% of the candles that were produced in the 4th quarter

D.  

Their 4th quarter sales included every candle produced in the 4th quarter as well as a few that remained in inventory from the 3rd quarter