Assuming That the Number of Units Produced Is Less Than

question 105

Multiple Choice

Assuming that the number of units produced is less than the number of units sold,which of the following statements is true when comparing net income using absorption and variable costing?

• A) Absorption costing will yield a higher net income.
• B) Variable costing will yield a higher net income.
• C) Net income will be the same under both methods.
• D) The sales price per unit will be less using absorption costing.

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Definitions:

Both Eyes

Refers to the use of binocular vision, where both eyes are used together to perceive depth and a wider field of view.

Horizontal Lines

Lines that run parallel to the horizon or ground level, often used in art and design to convey stability and calmness.

Vertical Lines

Lines that run up and down the page or canvas, often used in art and design to convey strength and stability.

Sensory Crossover

The phenomenon where stimulation of one sensory or cognitive pathway leads to automatic, involuntary experiences in a second sensory or cognitive pathway.