When Units Manufactured Exceed Units Sold

question 26

Multiple Choice

When units manufactured exceed units sold:

• A) variable costing income equals absorption costing income
• B) variable costing income is less than absorption costing income
• C) variable costing income is greater than absorption costing income
• D) variable costing income is greater by the number of units produced multiplied by the variable cost ratio.

---

Definitions:

Honeywell

A multinational conglomerate company that produces a variety of commercial and consumer products, engineering services, and aerospace systems.

Managing

The process of planning, organizing, leading, and controlling resources to achieve organizational goals effectively and efficiently.

Managerial Functions

Tasks performed by managers, which typically include planning, organizing, leading, and controlling.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.