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Question:524 CC uses absorption (full) costing and its direct competitor, FF uses variable costing for internal decision-making purposes. Last year, both companies reported the same production and sales volumes. Which is true? A. If sales are 10,000 units and production 12,000 units, CC's net income exceeds FF's. B. If sales are 10,000 units and production 10,000 units, FF's net income exceeds CC's. C. If sales are 10,000 units and production 8,000 units, FF's net income exceeds CC's. D. If sales are 12,000 units and production 10,000 units, FF's net income equals CC's. E. Unable to determine.

Question:524 CC uses absorption (full) costing and its direct competitor, FF uses variable costing for internal decision-making purposes. Last year, both companies reported the same production and sales volumes. Which is true? A. If sales are 10,000 units and production 12,000 units, CC's net income exceeds FF's. B. If sales are 10,000 units and production 10,000 units, FF's net income exceeds CC's. C. If sales are 10,000 units and production 8,000 units, FF's net income exceeds CC's. D. If sales are 12,000 units and production 10,000 units, FF's net income equals CC's. E. Unable to determine.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question:524 CC uses absorption (full) costing and its direct competitor, FF uses variable costing for internal decision-making purposes. Last year, both companies reported the same production and sales volumes. Which is true? A. If sales are 10,000 units and production 12,000 units, CC's net income exceeds FF's. B. If sales are 10,000 units and production 10,000 units, FF's net income exceeds CC's. C. If sales are 10,000 units and production 8,000 units, FF's net income exceeds CC's. D. If sales are 12,000 units and production 10,000 units, FF's net income equals CC's. E. Unable to determine.
Transcribed Image Text:Question:524 CC uses absorption (full) costing and its direct competitor, FF uses variable costing for internal decision-making purposes. Last year, both companies reported the same production and sales volumes. Which is true? A. If sales are 10,000 units and production 12,000 units, CC's net income exceeds FF's. B. If sales are 10,000 units and production 10,000 units, FF's net income exceeds CC's. C. If sales are 10,000 units and production 8,000 units, FF's net income exceeds CC's. D. If sales are 12,000 units and production 10,000 units, FF's net income equals CC's. E. Unable to determine.
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