Which of the Following Conditions Would Cause Absorption-Costing Income to Be

question 44

Multiple Choice

Which of the following conditions would cause absorption-costing income to be higher than variable-costing income?

• A) Units sold exceeded units produced.
• B) Units sold equaled units produced.
• C) Units sold were less than units produced.
• D) Sales prices decreased.
• E) Selling expenses increased.

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Definitions:

Drive

An internal motivational state created by physiological or psychological needs that drives an individual to engage in behaviors to satisfy those needs.

Alertness

A state of active attention by the mind to the environment or stimuli, often marked by a heightened sense of awareness.

Drive-Reduction Theory

A theory in psychology that posits the reduction of physiological needs is a primary motivator for behavior.

Tension Reduced

A state or process whereby physiological or psychological tension is decreased.