How Is Operating Income Affected If the Number of Units

question 152

Multiple Choice

How is operating income affected if the number of units sold exceeds the number of units produced?

• A)Operating income would be higher under a variable costing income statement.
• B)Operating income would be lower under a variable costing income statement.
• C)Operating income would be higher under an absorption costing income statement.
• D)Operating income would be the same under both a variable costing and absorption costing income statement.

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Definitions:

Mesentery

A fold of tissue that attaches organs to the body wall, supplying them with blood vessels and nerves.

Directional Terms

Terms used to describe the location of one body part in relation to another, often used in anatomy and medicine.

Inferior

Pertains to a lower position or location in the body.

Control Center

A system or area that manages or regulates certain functions, in biology, often referring to parts of the brain like the hypothalamus that regulate bodily functions.