When units produced are less than units sold, how does operating income differ between variable costing and absorption costing? Explain your answer.
What will be an ideal response?
When units produced are less than units sold, the operating income will be higher under variable costing. In this scenario, the units sold under absorption costing have a higher product cost per unit, which increases cost of goods sold and decreases operating income
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Which of the following statements is true of the U.S. Supreme Court?
A) The U.S. Supreme Court's decisions are appealable. B) The U.S. Supreme Court hears appeals only from the federal circuit courts of appeals. C) The U.S. Supreme Court does not hear any new evidence or testimony in reviewed cases. D) The U.S. Supreme Court does not grant any oral hearings to the parties.
Reductions in the average cost of a unit production as the total volume produced increases is
A. trial-and-error. B. Hawthorne effect. C. economies of scale. D. systematic management. E. human relations.