When Units Sold Exceeds Units Produced

question 18

Multiple Choice

When units sold exceeds units produced

• A)net income under absorption costing is higher than net income under variable costing.
• B)net income under absorption costing is lower than net income under variable costing.
• C)net income under absorption costing equals net income under variable costing.
• D)the relationship between net income under absorption costing and net income under variable costing cannot be predicted.

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Definitions:

Money

Any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.

Issued

Issued generally refers to the official distribution or release of items such as documents, currency, or securities by an authoritative entity.

Declared

Stated or made known officially or publicly.

Unit Of Account

A standard numerical monetary unit of measurement of the market value of goods, services, and other transactions.