Which of the Following Is TRUE Concerning Operating Income Calculated

question 37

Multiple Choice

Which of the following is TRUE concerning operating income calculated under variable costing as compared to absorption costing?

• A)Operating income is lower under variable costing when production exceeds sales.
• B)Operating income is higher under variable costing when production exceeds sales.
• C)Operating income is lower under variable costing when sales exceeds production only if there is a production-volume variance.
• D)operating income is higher under variable costing when production exceeds sales only if there is a production-volume variance.
• E)The relationship between production and sales has no bearing on the differences in operating income between the two methods.

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Definitions:

Aging Population

denotes an increase in the median age of a population due to declining birth rates and/or increasing life expectancy, posing various societal challenges.

Health Care

The maintenance or improvement of health via the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in people.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, acting as a form of risk management for health care costs.

Uninsured Persons

Individuals lacking health insurance coverage, which often leads to reduced access to healthcare services and can result in financial difficulty in the event of major health issues.