If Production Exceeds Units Sold, Which of the Following Is

question 322

Multiple Choice

If production exceeds units sold, which of the following is TRUE concerning income?

• A) A higher operating income will result under a variable costing income statement.
• B) A lower operating income will result under an absorption costing income statement.
• C) The same operating income will result under both a variable costing and absorption costing income statement.
• D) A higher operating income will result under an absorption costing income statement.

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Definitions:

Anxiety

Experiencing stress or concern due to the unpredictability of a situation.

Primary Emotions

Emotions that are present in humans and other animals, and emerge early in life; examples are joy, anger, sadness, fear, and disgust.

Interest

The feeling of wanting to learn more about something or to be involved in something; also refers to a charge for borrowing money.

Self-Conscious Emotions

Emotions that require self-awareness, especially consciousness and a sense of “me”; examples include jealousy, empathy, and embarrassment.