If the Number of Units Produced Exceeds the Number of Units

question 59

True/False

If the number of units produced exceeds the number of units sold,the full-absorption operating profit will be lower than variable costing operating profit.

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Definitions:

Revenue

The entire sum of money earned from selling goods or services that are central to a company's main business activities.

Flexible Budget

A budget designed to vary in response to different levels of volume or activity.

Revenue

The income generated from normal business operations, such as the sale of goods or services.

Budget

A detailed plan for the future that is usually expressed in formal quantitative terms.