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
When units manufactured exceed units sold, variable costing income Oa. is less than absorption costing income Ob. is greater by the number of units produced multiplied by the variable cost ratio Oc. is greater than absorption costing income Od. equals absorption costing income
TRUE OR FALSE When units sold exceed, units produced, income under absorption costing is higher than income under variable costing.
Answer of this account questions wanted
Operating income computed using the direct costing would generally exceed operating income computed using the absorption costing if: A. Units sold are less than units produced B. The unit fixed cost is zero C. Units sold exceed units produced D. Units sold equal units produce
Unit cost is the same as average cost of a product or service OA. True O B. False
The amount of a unit’s sales price that helps to cover fixed expenses is its ________.A. contribution marginB. profitC. variable costD. stepped cost
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
Income under absorption costing will be lower than the income under variable costing when the costs of Group of answer choices Units manufactured exceeds the units sold during the period Units manufactured are equal to the units sold during the period Units manufactured are less than the units sold during the period Beginning inventory exceeds the ending inventory
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

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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