Which of the Following Situations Would Cause Variable-Costing Net Income

question 92

Multiple Choice

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