If the Number of Units Sold Exceeds the Number of Units

question 14

Multiple Choice

If the number of units sold exceeds the number of units produced,how is operating income affected?

• A)Operating income would be the same under both a variable costing and absorption 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 higher under a variable costing income statement.

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Definitions:

Reflexes

Automatic, involuntary responses to specific stimuli, designed to protect the body and maintain homeostasis without conscious effort.

Nipple

A small projection of skin on the breast through which, in females, milk is delivered to a mother’s young.

Food

Substances consumed to provide nutritional support for the body, primarily consisting of plant, animal, or fungal origin.

Reflex

A simple, automatic response to a sensory stimulus, such as the knee-jerk response.