If the Number of Units Sold Is Greater Than the Number

question 50

Multiple Choice

If the number of units sold is greater than the number of units produced,

• A)full costing and variable costing will yield the same net income.
• B)variable costing will assign some fixed manufacturing costs to the units in ending inventory.
• C)net income will be higher under variable costing than under full costing.
• D)inventory levels will increase.

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Definitions:

Asset Allocation

The strategy of distributing investments among various asset classes, such as stocks, bonds, and cash, to achieve a desired risk-reward balance.

Stock Selection

The process of choosing stocks for investment based on criteria such as financial health, market position, and growth potential to maximize returns.

Bond Selection

The process of choosing bonds for investment based on factors such as yield, maturity, credit quality, and issuer.

Unique Risk

Also known as unsystematic or idiosyncratic risk, it refers to the risk associated with a particular company or industry that can be mitigated through diversification.