General Account questions anser wanted The amount of income under absorption costing willbe less than the amount of income under variablecosting when units are manufactured:a. exceed units soldb. equal units soldc. are equal to or greater than units soldd. are less than units sold

Approach to solving the question: Absorption Costing < Variable CostingThis is because if sales…

Answered: The amount of income under absorption…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....

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Similar questions

The amount of a units sales price that helps to cover fixed expenses is its ____________________. A. contribution margin B. profit C. variable cost D. stepped cost
For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
TRUE OR FALSE When units sold exceed, units produced, income under absorption costing is higher than income under variable costing.
When units produced are less than units sold, income under absorption costing is higher than income under variable costing. True or False True False
Which condition would cause absorption-costing net income to be greater than variable-costing net income? A. Units sold exceeded units produced B. Units sold equaled units produced C. Units sold were less than units produced. D. Sales prices decreased
Gross margin is to absorption costing as which of the following is too variable costing? A. Gross Profit B. Contribution Margin C. Net Income D. Product Margin
Income under absorption costing will be higher than the income under variable costing when the costs of Group of answer choices Beginning inventory exceeds the ending inventory Units manufactured are less than the units sold during the period Units manufactured exceeds the units sold during the period Units manufactured are equal to the units sold during the period
When units produced equal units sold, reported income is identical under absorption costing and variable costing. True or False True False
Variable costing income will be greater than absorption costing income when: a. Sales is greater than production. b. contribution pricing is applied c. Production is less than or equal to sales. d. Production is greater than sales
As the level of activity increases, how will a mixed cost behave? a. Increase in total but would decrease per unit b. Increase in total and per unit c. Increase per unit but would increase in total d. None of these e. Decrease in total and per unit
The following data were provided by Rider, Inc, which produces a single product that it sells for $25 per unit: Units in beginning inventory Units produced Units sold Variable costs, per unit: direct materials direct labor manufacturing overhead selling and admin ixed costs, in total: manufacturing overheal selling and admin 0 5,000 4,000 $4.00 $3.00 $3.00 $4.00 $15,000 $10,000 the year in question, one would expect the net operating income under absorption costing to be:
The equation for total costs (Y) is: Y = a+ bX In this equation, “a” represents: Net income Cost of goods sold Total fixed costs The level of activity (e.g., the number of units produced) Total variable costs Variable cost per unit of X Total revenue

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The amount of income under absorption costing will be less than the amount of income under variable costing when units are manufactured: a. exceed units sold b. equal units sold c. are equal to or greater than units sold d. are less than units sold