What Is the Relationship Between Absorption Costing Net Income and Variable

question 65

Multiple Choice

What is the relationship between absorption costing net income and variable costing net income?

• A)Absorption costing net income exceeds variable costing net income when units produced and sold are equal.
• B)Variable costing net income exceeds absorption costing net income when units produced exceed units sold.
• C)Absorption costing net income exceeds variable costing net income when units produced are less than units sold.
• D)Absorption costing net income exceeds variable costing net income when units produced are greater than units sold.

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Definitions:

Need For Power

The desire to control, influence, or be responsible for other people.

Acquired Needs Theory

A motivational theory that suggests human needs for achievement, affiliation, and power are developed over time based on life experiences.

Need For Power

An individual's desire for influence or control over others, motivating them to seek positions of authority.

Need For Affiliation

The desire to establish and maintain good relations with people.