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Nata [24]
3 years ago
6

Which of the following statements is true concerning income if manufacturing production exceeds units sold?A higher operating in

come will result under variable costingA lower operating income will result under absorption costingA higher operating income will result under absorption costingThe same operating income will result
Business
1 answer:
vova2212 [387]3 years ago
4 0

Answer:

A higher operating income will result under absorption costing

Explanation:

If manufacturing production exceeds units sold there will be an increase in inventory and increases in inventory cause income to be higher under absorption costing  than under variable costing.

Under variable costing, as its name suggests, only variable production costs are assigned to inventory and cost of goods sold.  

Under absorption costing, normal manufacturing costs are considered product costs and included in inventory.

<em>Recognize that a reduction in inventory during a period will cause the opposite effect. </em>

<em>Specifically, a portion of the contents of the beginning inventory would be transferred to expense commensurate with the decrease in inventory. </em>

<em>Since the inventory contains less under variable costing, expect expenses to be lower and income to be higher.</em>

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Tju [1.3M]

$1,130.28

Formula is A = P (1 + [r/n])^(nt)

A= 879 (1+ [.018/4])^(4*14)

A= 879 (1.0045)^56

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A = future total amount

P = principle (amount initially deposited)

r = the annual interest rate (decimal)

n = times that interest is compounded per year  (quarterly is 4 times per year)

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3 0
3 years ago
A bank reconciliation:Group of answer choicesis a formal financial statementboth A and B are correctis part of a sound internal
Anna [14]

The Correct question reads;

Which of the following statements about bank reconciliations is correct?

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b. Is part of a sound internal control system

c. Is a formal financial statement

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Answer:

<u>a. Should not be prepared by an employee who handles cash transactions</u>

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It is only a bank that prepares a bank reconciliation statement. So, it is correct to say that a bank reconciliation statement should not be prepared by an employee who handles cash transactions.

3 0
3 years ago
After jeremy has made his sales presentation and answered the prospect's objections, he says, "when would you like to take deliv
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After Jeremy has made his sales presentation and answered the prospect's objections, he says, "When would you like to take delivery of the copier?" This is called a trial closing. <span>A Trial Close is not a normal 'closing technique' but a test to determine whether the person is ready to close. It is use after a presentation or after a strong selling point had made or when to answer objections.</span>



6 0
3 years ago
What does difficult to find finance mean?
WARRIOR [948]

a condition or state of affairs almost beyond one's ability to deal with and requiring great effort to bear or overcome. "grappling with financial difficulties"

4 0
3 years ago
‏( Z ) Company has beginning inventory of 15,000 units and expected sales of 23,000 units . If the desired ending inventory is 1
devlian [24]

Answer:

the  number of units should be produced is 26,000 units

Explanation:

The computation of the number of units should be produced is as follows:

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4 0
2 years ago
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