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:

Homeostasis

is the process by which living organisms regulate their internal environment to maintain stable, optimal conditions despite external changes.

Drive-Reduction Theory

A theory of motivation suggesting that biological needs create internal states of tension or arousal—called drives—which organisms are motivated to reduce.

Biological Concept

Fundamental ideas or principles that relate to the biological sciences, encompassing a wide range of phenomena from genetic inheritance to evolution.

Arousal Theory

A theory of motivation suggesting that people are motivated to maintain an optimal level of alertness and physical and mental activation.