When the Number of Units Sold Exceeds the Number of Units

question 8

Multiple Choice

When the number of units sold exceeds the number of units produced,net income under variable costing ________ net income under absorption costing.

• A) is less than
• B) exceeds
• C) equals
• D) not enough information to determine

---

Definitions:

Mediation

A form of alternative dispute resolution where a neutral third party helps the disputing parties to reach a mutually acceptable agreement.

Arbitration

is the process of resolving disputes outside courts, where a neutral third party makes a decision after hearing both sides.

Trial

A formal examination of evidence before a judge, and typically a jury, in order to decide guilt in a case of criminal or civil proceedings.

Arbitration Award

The decision made by an arbitration panel or arbitrator at the conclusion of an arbitration proceeding.