When Production Is Greater Than Sales

question 42

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:

Economics of Information

A study within economics that analyzes how information affects an economy and economic decisions.

Rational Assessment

The evaluation of situations or solving problems based on logic and reasoning, often involving critical thinking and analysis.

Hyperopia

In marketing, refers to a consumer's tendency to prioritize long-term benefits over immediate gratification, opposite of myopia. In vision, it is farsightedness.

Habitual Decision Making

The process of making choices that are consistent and routine, often without much thought, typically based on past behaviors and patterns.