Net Operating Income Computed Using Variable Costing Would Exceed Net

question 129

Multiple Choice

Net operating income computed using variable costing would exceed net operating income computed using absorption costing if:

• A) units sold exceed units produced.
• B) units sold are less than units produced.
• C) units sold equal units produced.
• D) the average fixed cost per unit is zero.

---

Definitions:

P-Value

The probability of obtaining test results at least as extreme as the ones observed, assuming that the null hypothesis is correct.

Left Tailed

Pertaining to a one-sided test in statistics where the critical area is on the left side of the distribution curve.

Test-Statistic

A value calculated from sample data during a hypothesis test, used to decide whether to reject the null hypothesis.

P-Value

The probability of obtaining a test statistic at least as extreme as the one observed, under the assumption that the null hypothesis is true, used in hypothesis testing to determine statistical significance.