When Production Exceeds Sales

question 9

Multiple Choice

When production exceeds sales

• A)Ending inventory under variable costing will exceed ending inventory under absorption costing
• B)Ending inventory under absorption costing will exceed ending inventory under variable costing.
• C)Ending inventory under absorption costing will be equal to ending inventory under variable costing.
• D)Ending inventory under absorption costing may either exceed, be equal to, or be less than ending inventory under variable costing.

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Definitions:

Utility Function

A mathematical representation of how a consumer's satisfaction or happiness is affected by consuming different quantities of goods and services.

Golf

A sport involving hitting a small ball into a series of holes with the least number of strokes possible, using various clubs.

Tennis

A racket sport that can be played individually against a single opponent or between two teams of two players each, where players hit a ball over a net trying to score points against opponents.

Curds

Soft, white substance formed when milk coagulates, used as the basis for cheese making or eaten directly as a food product.