UNDER VARIABLE COSTING, PRODUCING MORE UNITS THAN THE NUMBER OF UNITS SOLD IN A PERIOD WILL: A. CAUSE NET OPERATING INCOME FOR THE PERIOD TO DECREASE. B. CAUSE NET OPERATING INCOME FOR THE PERIOD TO INCREASE. C. HAVE NO EFFECT ON NET OPERATING INCOME FOR THE PERIOD.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 14MC: Which of the following statements is true regarding average fixed costs? A. Average fixed costs per...
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UNDER VARIABLE COSTING, PRODUCING MORE UNITS THAN THE NUMBER OF
UNITS SOLD IN A PERIOD WILL:
A. CAUSE NET OPERATING INCOME FOR THE PERIOD TO DECREASE.
B. CAUSE NET OPERATING INCOME FOR THE PERIOD TO INCREASE.
C. HAVE NO EFFECT ON NET OPERATING INCOME FOR THE PERIOD.
Transcribed Image Text:UNDER VARIABLE COSTING, PRODUCING MORE UNITS THAN THE NUMBER OF UNITS SOLD IN A PERIOD WILL: A. CAUSE NET OPERATING INCOME FOR THE PERIOD TO DECREASE. B. CAUSE NET OPERATING INCOME FOR THE PERIOD TO INCREASE. C. HAVE NO EFFECT ON NET OPERATING INCOME FOR THE PERIOD.
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