When All the Units Produced Are Sold,the Operating Income Calculated

question 133

True/False

When all the units produced are sold,the operating income calculated under absorption costing is higher when compared to the operating income calculated under variable costing.Assume that there is no beginning Finished Goods Inventory.

---

Definitions:

Firms

Businesses or companies engaged in commercial, industrial, or professional activities.

PR Agency

A specialized organization that helps companies and individuals in effectively communicating and building a favorable public image through various media and communication strategies.

Private Corporation

A company owned by a small group of people or by a non-governmental organization, and its shares are not traded on public stock exchanges.

Non-profit Organization

An entity structured to operate and provide services or support for public or social benefit rather than generating profits for owners or shareholders.