When the Number of Units Produced Is Less Than the Number

question 285

Multiple Choice

When the number of units produced is less than the number of units sold, how does operating income under variable costing differ from operating income under absorption costing?

• A) It is lower than operating income under absorption costing.
• B) It is the same as operating income under absorption costing.
• C) It is higher than operating income under absorption costing.
• D) It depends upon the amount of decline.

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Definitions:

Social Anxiety Disorder

A chronic mental health condition characterized by intense fear and avoidance of social situations due to perceived judgment or scrutiny by others.

Thought Action Fusion

A cognitive distortion where individuals believe that thinking about an action is equivalent to performing it.

Obsessions

Recurrent and uncontrollable thoughts, impulses, or ideas that an individual finds disturbing and anxiety-provoking.

Negative Evaluation

The assessment of something with a focus on its faults or disadvantages, often leading to a conclusion that views the subject in a predominantly critical light.