If the Number of Units Sold Is Greater Than the Number

question 50

Multiple Choice

If the number of units sold is greater than the number of units produced,

• A)full costing and variable costing will yield the same net income.
• B)variable costing will assign some fixed manufacturing costs to the units in ending inventory.
• C)net income will be higher under variable costing than under full costing.
• D)inventory levels will increase.

---

Definitions:

Securities

Securities that signify either an equity stake in a corporation that is publicly traded, a debt interest in a company or government entity, or ownership rights as delineated by an option.

HML Beta

A measure used in finance to assess the sensitivity of an asset or portfolio to a value factor, defined as high minus low book-to-market stocks.

SMB Beta

Stands for Small Minus Big Beta, a metric used in finance to measure a stock's sensitivity to the SMB factor, which represents the excess return of small-cap stocks over large-cap stocks.

Market Beta

A measure of a stock's volatility in relation to the overall market; indicates the stock's sensitivity to market movements.