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:

Processing

The act of performing a series of systematic operations on data or materials to transform, analyze, or generate a result.

Interview

A form of oral interaction structured to achieve a goal; it often includes just two people (but can include more) who take turns speaking and listening.

Follow-up

Involves taking additional steps or actions after an initial activity or communication to ensure completeness, address any issues, or provide further information.

Interview Notes

Written records taken during an interview to capture the essence of the discussion, including questions asked and responses given.