In Which of the Following Ways Does Demand Influence Profit

question 31

Multiple Choice

In which of the following ways does demand influence profit?

• A) It predicts how many units will be sold.
• B) It directly influences the fixed cost of production.
• C) It helps in reducing the variable cost of production.
• D) It reduces the unit cost of production.

Calculate and interpret the unit product cost under both variable and absorption costing methods.

Calculate and interpret net operating income under variable and absorption costing methods.

Understand the impact of costing methods on net operating income.

Analyze the total period costs under variable costing.