Use the Following Information for the Next 3 Questions

question 82

Multiple Choice

Use the following information for the next 3 questions.
Exeter Mfg. Co. introduced a new mass-produced specialty product early in the year. Production and sales of this product for the first four months are as follows: The firm's budgeted fixed overhead is $200,000, and budgeted output is 1,000 units per month. The volume variance, if any, is carried forward month-by-month and closed at the end of the year. When 1,000 units are produced and sold, expected monthly operating income is $40,000.
-In which month(s) was variable costing income higher than absorption costing income?

• A) 4
• B) l, 2, and 3
• C) 2 and 3
• D) 3 and 4

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Definitions:

Projection

A psychological mechanism wherein individuals attribute their own undesired thoughts, feelings, or motives to another person or group.

Projection

In psychology, a defense mechanism in which an individual ascribes their own unacceptable thoughts, feelings, or motives to another person. In business, it often refers to the estimation or forecasting of future trends based on current data.

Impression Management

Strategies individuals or organizations use to influence the perceptions of others, often to appear more favorable or competent.

Personal Attributes

Characteristics or qualities that define an individual's personality and behavior.