Fixed Costs Are $10 Per Unit, and Variable Costs Are

question 73

Essay

Fixed costs are $10 per unit, and variable costs are $25 per unit. Production was 13,000 units, while sales were 12,000 units. Determine (a) whether variable costing operating income is less than or greater than absorption costing operating income and (b) the difference in variable costing and absorption costing operating income.

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Definitions:

Nonsignificant

An outcome of a statistical test indicating that the evidence is not strong enough to reject the null hypothesis.

Nonsignificant

A statistical term indicating that the results of an analysis do not show evidence to reject the null hypothesis, suggesting that any observed effect could be due to chance.

Insignificant

A term used in statistics to describe a result that fails to provide enough evidence to reject the null hypothesis.

Statistical Concept

A statistical concept encompasses principles and theories related to collecting, analyzing, interpreting, and presenting data in order to make informed decisions or conclusions.