Which of the Following Statements Is TRUE

question 38

Multiple Choice

Which of the following statements is TRUE?

• A)Absorption costing net income exceeds variable costing net income when units produced and sold are equal.
• B)Variable costing net income exceeds absorption costing net income when units produced exceed units sold.
• C)Absorption costing net income exceeds variable costing net income when units produced are less than units sold.
• D)Absorption costing net income exceeds variable costing net income when units produced are greater than units sold.

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Definitions:

Analogies

Comparisons made between two things that are alike in some respects, often used to explain or clarify concepts.

Conclusions

Statements or judgments that follow logically from the analysis of information, summarizing findings and providing closure on a subject or issue.

Slippery Slope

A logical fallacy or argument that suggests taking a minor action will lead to major and oftentimes negative consequences without providing evidence for such a drastic outcome.

Dichotomy

A division or contrast between two things that are represented as being entirely different.