When Production Is Greater Than Sales

question 1

Multiple Choice

When production is greater than sales

• A)net income under absorption costing will be greater than or less than net income under variable costing depending on the selling and administration costs.
• B)net income under absorption costing will be equal to net income under variable costing.
• C)net income under absorption costing will be less than net income under variable costing.
• D)net income under absorption costing will be greater than net income under variable costing.

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Definitions:

Experimental Research

A research design that permits inferences about cause and effect by exerting control, systematically manipulating a variable, and studying the effects on measured variables.

Control Group

In experimental research, the group of participants that does not receive the experimental treatment, used for comparison purposes.

Random Assignment

A method of assigning participants that ensures each participant has an equal chance of being assigned to the experimental group or control group.

Experimental Group

The group in an experimental study that receives the treatment or intervention being tested.