Assuming More Items Are Sold During a Period Than Are

question 56

Multiple Choice

Assuming more items are sold during a period than are produced in that same period, which of the following will result?

• A) Net income using the absorption costing method will be equal to net income using the variable costing method.
• B) Net income using the absorption costing method will be less than net income using the variable costing method.
• C) Net income using the absorption costing method will be greater than net income using the variable costing method.
• D) Net income using the absorption costing method will be randomly different from net income using the variable costing method.

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Definitions:

Gemma

A small asexual reproductive structure found in some plants, such as liverworts, that can develop into a new organism.

Liverworts

A group of non-vascular plants belonging to the plant division Marchantiophyta, often found in moist, shaded environments.

Lycopodiophyta

A division of plants, commonly known as clubmosses, characterized by a primitive vascular system, often found in moist, shaded environments.

Hepaticophyta

A division of non-vascular plants commonly known as liverworts, which are simple plants that form flat green thalli.