If Production Exceeds Units Sold, Which of the Following Is

question 322

Multiple Choice

If production exceeds units sold, which of the following is TRUE concerning income?

• A) A higher operating income will result under a variable costing income statement.
• B) A lower operating income will result under an absorption costing income statement.
• C) The same operating income will result under both a variable costing and absorption costing income statement.
• D) A higher operating income will result under an absorption costing income statement.

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Definitions:

Pioneering

The act of being among the first to explore, develop, or adopt new techniques, areas of knowledge, or technology.

Informational

Pertaining to data, facts, or details that provide knowledge or insight.

Features and Benefits

Specific characteristics of a product or service (features) and how they provide value to the customer (benefits).

Pioneering

The act of being among the first to explore, discover, or use something new.