If the Number of Units Produced Is More Than the Number

question 7

Multiple Choice

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

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

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Definitions:

Cognitive Therapy

A type of therapy that aims to change negative patterns of thinking, helping individuals to view challenging situations more clearly and respond to them more effectively.

Faulty Thinking

Cognitive distortions or irrational patterns of thinking that negatively influence one’s perceptions and decision-making.

Community Setting

A social environment outside of institutional or hospital care where individuals live, work, and interact.

Symptom Management

The practice of implementing strategies or treatments to alleviate or reduce the severity of symptoms caused by an illness or condition.