The Following Data Were Provided by Green Enterprises for the Most

question 85

Multiple Choice

The following data were provided by Green Enterprises for the most recent period:
$\begin{array} { | l | r | } \hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,000 \\\hline \text { Units sold } & 6,000 \\\hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 15 \\ \hline \text { Selling and administrative } &\$ 5 \\\hline \text { Fixed costs in total } & \\\hline \text { Manufacturing } & \$ 24,000\\\hline \text { Selling and administrative } & \$ 16,000\\\hline\end{array}$

-For the period noted,which of the following statements best describes the relationship between the operating income under absorption costing and under variable costing?

• A) Absorption costing operating income would be higher than the operating income under variable costing.
• B) Absorption costing operating income would be lower than the operating income under variable costing.
• C) Absorption costing operating income would be the same as the operating income under variable costing.
• D) The relationship between absorption costing operating income and variable costing operating income cannot be determined without additional information.

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Definitions:

Multiple Types

The existence or occurrence of various kinds or forms of something.

Person-Environment Psychology

A field of psychology that examines the interaction between individuals and their physical, social, and cultural environments, and how these interactions affect behavior and development.

Reciprocal Relationship

A mutual relationship where both parties benefit and influence each other, such as the interplay between work and personal life.

Differentiation

The process of distinguishing or creating differences between products, services, or concepts, often to create a competitive advantage.