When sales exceed production, the net operating income reported under variable costing generally will be:_____.

1 answer:

6 0

When sales exceed production, the net operating income reported under variable costing generally will be <u>greater than the net operating income reported under absorption costing</u>.

Under variable costing, constant manufacturing overhead fee is handled as product cost. If the range of devices produced exceeds the range of gadgets sold, then net operating income under absorption costing will: be extra than net operating earnings underneath variable costing.

Variable costing is a concept used in managerial and cost accounting wherein the fixed production overhead is excluded from the product price of manufacturing. The technique contrasts with absorption costing, in which the fixed manufacturing overhead is allotted to products produced.

Absorption costing, once in a while known as “full costing,” is a managerial accounting technique for taking pictures of all prices associated with manufacturing a selected product. The direct and oblique costs, together with direct substances, direct exertions, leases, and insurance, are accounted for with the aid of the use of this method.

Learn more about Absorption costing here brainly.com/question/26276034

#SPJ4

You might be interested in

White Leo Autos manufactures and markets four different cars, Leo Sport, Leo Prestige, Leo Spark, and Leo Ease. These four produ

Neporo4naja [7]

Answer:

C. Business Strategy

Explanation:

White Leo Autos has four different cars and each of them operates as a separate Strategic Business Unit SBUs.

Business strategy is how the SBU competes in the market. The competitive strategy of the unit like differentiation strategy or cost leadership etc.

Corporate strategy focuses on how each SBU is operating and how it serves to the mission and vision of the organisation.

Functional strategy focuses on the different functions like HR, marketing, finance of each SBU.

3 0

3 years ago

Explain why it might be difficult for a new,

statuscvo [17]

Answer:

The Threat of New Entrants exerts a significant influence on the ability of current companies to generate a profit Gross Profit Gross profit is the direct profit left over after deducting the cost of goods sold, or cost of sales, from sales revenue. It's used to calculate the gross profit margin

Explanation:

3 0

2 years ago

The minimum number of training days per week for gaining strength is:

astra-53 [7]

At least 3 days per week with sufficient reps and sets.

7 0

2 years ago

In some cases, individuals who start a business have special voting rights that help them exercise more control over the firm. T

Olin [163]

individuals that have special voting rights owns a special class of stock called classified stock.

The classified stock refers to class of common stock that comes with special privileges like dividend rights or enhanced voting rights.

Usually, these stock are issued/owned by individual that started or co-start the business.

The classified stock is used to ensure the company's founders maintain its control over the establish company even without owning the majority of the common stock.

Therefore, the individuals that have special voting rights owns a special class of stock called the classified stock.