Which of the Following Situations Would Cause Variable-Costing Income to Be

question 13

Multiple Choice

Which of the following situations would cause variable-costing income to be lower than absorption-costing income?

• A)Units sold equaled 39,000 and units produced equaled 42,000.
• B)Units sold and units produced were both 42,000.
• C)Units sold equaled 55,000 and units produced equaled 49,000.
• D)Sales prices decreased by $7 per unit during the accounting perioD.
• E)Selling expenses increased by 10% during the accounting period.

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Definitions:

Fundamental Justice

A constitutional principle in Canadian law requiring fairness in legislation that affects individuals' rights.

Procedural Fairness

The requirement that legal and administrative processes are conducted in a manner that is fair and impartial to all parties involved.

Administrative Tribunal

A specialized government body empowered to adjudicate disputes, make administrative decisions, and review administrative actions.

Discretionary Power

Authority granted to an individual or body to make decisions within certain guidelines without the need for explicit rules.