Multiple Chaleemark). Select the correct answer in the green 1 Which of the following is of Variante Costing A) often lead to better decision making 7) te makes me to estimate profitability of een lo Pro are affected by cash flow and not inventory changes D) All of the above TO 7 Which of the following costs is not included in product cout using a variabile conting system? A) Direct Material ) Direct labour lo Variable Manufacturing Overhead D) Fixed Manufacturing Overhead Which costs will change with a increase in activity within the relevant range? A) Total fixed costs and total variable costs. B) Per unit fixed cost and total variable costs. c) Per unit variable cost and per unit fixed cost. D) Per unit fixed cost and total fixed costs. 7.3 14 15 16 17 18 19 20 21 22 23 24 25 3 26 27 8 9 Assume Liane Co. is using an absorption costing system. If production is greater than sales (thus the company is building inventory) which the following is true? A) Operating income will be the same as if a variable costing system was used. B) Operating income will be lower than if a variable costing system was used. C) Operating income will be higher than if a variable costing system was used. D) There is not enough information to determine the operating income. 5 Which of the following is a cost of not carrying sufficient inventory? A) Transportation charges on a rush order of parts or direct material B) Spoilage on perishable goods C) Interest on working capital loan D) Municipal taxes on inventory facility