When the Units Produced Equals the Units Sold

question 34

Multiple Choice

When the units produced equals the units sold

• A)Operating income is higher under absorption costing than under variable costing.
• B)Operating income is lower under absorption costing than under variable costing.
• C)Operating is the same under absorption costing and variable costing.
• D)Cannot be determined with the information given.

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Definitions:

Six Capitals

A framework that identifies six types of capital organizations use to create value: financial, manufactured, intellectual, human, social and relationship, and natural.

Eco-Intensity Measures

Quantitative assessments that evaluate the environmental impact of a company's activities in relation to its economic value or output.

Output

The quantity of goods or services produced in a given time period by a firm or industry.

Input

Resources used in the production process, including raw materials, labor, and capital, which contribute to the creation of goods or services.