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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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.
Answer of this account questions wanted
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
When units produced equal units sold, reported income is identical under absorption costing and variable costing. True or False True False
How is operating income affected if the number of units sold exceeds the number of units produced? Select one: a. Operating income would be higher under a variable costing income statement. b. Operating income would be lower under a variable costing income statement. c. Operating income would be higher under an absorption costing income statement. d. Operating income would be the same under both a variable costing and absorption costing income PreviousSave AnswersNext
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
Which TWO of the following statements concerning marginal costing are TRUE? A. Closing inventories are valued at full production cost. B. Fixed costs are treated as a period cost and are charged in full to the income statement of the accounting period in which they are incurred. O.C. Marginal cost is the cost of a unit which would be avoided if that unit were not produced. OD. Contribution is calculated as sales revenue plus all variable costs.

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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