Other Things Being Equal, Income Computed by the Variable Costing

question 117

Multiple Choice

Other things being equal, income computed by the variable costing method will exceed that computed by the full costing method if:

• A) Units produced exceed units sold.
• B) Units sold exceed units produced.
• C) Fixed manufacturing costs increase.
• D) Variable manufacturing costs increase.

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Definitions:

Market Revolution

The dramatic increase in exchange of goods and services in the 19th century U.S., facilitated by advancements in transportation, commercialization, and industrialization.

Economic Opportunities

Prospects for participation in economic activities that can lead to employment and financial success.

Cult of Domesticity

A 19th-century ideology in the United States and Britain that glorified women's roles in home-making and child-rearing, emphasizing piety, purity, domesticity, and submissiveness.