How Is Operating Income Affected If the Number of Units

question 152

Multiple Choice

How is operating income affected if the number of units sold exceeds the number of units produced?

• A)Operating income would be higher under a variable costing income statement.
• B)Operating income would be lower under a variable costing income statement.
• C)Operating income would be higher under an absorption costing income statement.
• D)Operating income would be the same under both a variable costing and absorption costing income statement.

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Definitions:

Cross-sectional

Pertaining to a research design that examines a data sample or multiple samples at one specific point in time.

Sequential Method

A research or problem-solving technique that involves proceeding through a series of steps in order, one after the other.

Developmental Research Designs

Research methods used to examine changes in behavior or abilities over time, typically used in psychological and educational studies.

Panel Study

A type of longitudinal study where data are collected from the same subjects at multiple points in time, useful for identifying trends and changes.