When Monthly Production Volume and Sales Are the Same, ____

question 106

Multiple Choice

When monthly production volume and sales are the same, ____.

• A) absorption income equals variable income
• B) absorption income is greater than variable income
• C) the cost of goods sold equals miscellaneous expenses
• D) the cost of goods sold is greater than miscellaneous expenses

---

Definitions:

Time-Driven Activity-Based Costing

A refinement of activity-based costing that uses time as the main cost driver to allocate costs to products or services.

Order Fulfillment Department

The division within a company responsible for processing and delivering orders to customers.

Capacity Analysis

entails assessing the maximum output level an organization can achieve with its current resources, considering constraints like space and machinery.

Time-Driven Activity-Based Costing

A refinement of activity-based costing that assigns costs based on the duration activities require, leveraging time as the primary driver.