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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Definitions:

Cones

Photoreceptor cells in the retina of the eye that enable color vision and function best in relatively bright light.

Optic Nerve

The nerve that transmits visual information from the retina to the brain, crucial for vision.

Optic Chiasm

A structure located at the base of the brain where the optic nerves cross, allowing visual information from each eye to be processed on both sides of the brain.

Optic Chiasm

The point in the brain where the optic nerves partially cross, allowing visual information from each eye to be processed by both hemispheres.