If the Number of Units Produced Is Less Than the Number

question 66

Multiple Choice

If the number of units produced is less than the number of units sold,which of the following statements is true when comparing operating profit under absorption versus variable costing?

• A)Sales revenue will be less when absorption costing is used.
• B)Absorption costing will produce a higher operating profit.
• C)Operating profit is the same under both methods.
• D)Variable costing will produce a higher operating profit.
• E)None of the answer choices is correct.

Analyze economic behavior using basic supply and demand tools in the context of GDP.

Understand the concept and components of Gross Domestic Product (GDP) and its importance as an economic measure.

Distinguish between GDP, Gross National Product (GNP), Net National Product (NNP), and other income measures.

Recognize the circular-flow diagram and its components, including the roles of households and firms.

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Definitions:

Hydraulic Fracturing

A process used in the oil and gas industry to increase the flow of oil or gas from a well by injecting high-pressure fluid into the surrounding rock.

Fracking

A method of extracting natural gas or oil from the earth by injecting fluid into subterranean rocks at high pressure.

Civil Law

Civil law is a legal system that deals with disputes between private parties, and includes laws such as contracts, torts, and property, distinguishing it from criminal law.

Legal Realism

The school of jurisprudence which dictates that context must be considered as well as law. Context includes factors such as economic conditions and social conditions.