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:

Magnetic Fluids

Liquids that are magnetized or capable of being magnetized, commonly referred to as ferrofluids, used in various technological and medical applications.

Animal Magnetism

An outdated term that referred to a naturalistic healing power or force, postulated by Franz Mesmer, thought to reside within certain individuals.

Sakel

A reference to Manfred Sakel, a psychiatrist known for introducing insulin coma therapy for psychiatric purposes in the 1930s.

Insulin

A hormone produced by the pancreas that regulates glucose levels in the blood, crucial for managing diabetes.