1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
scZoUnD [109]
3 years ago
8

The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactu

red a.exceed units sold b.are less than units sold c.are equal to or greater than units sold d.equal units sold
Business
1 answer:
Sholpan [36]3 years ago
8 0

Answer: A.exceed units sold

Explanation:

In Absorption Costing, All costs be it Fixed or Variable that are directly related to production are considered when computing the Cost of Production.

Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.

This difference in consideration of costs under each method leads to difference in income determination under each method.

Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.

This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.

You might be interested in
Describe the two primary functions of financial accounting
andreev551 [17]

Answer: Measurement and presentation of financial performance

Explanation: The two primary functions of financial accounting are measurement and presentation of financial performance.

The measurement function is performed by following accounting procedures and policies under US GAAP and IFRS.

Whereas, presentation function relates to preparation of financial statements like income statement and cash flow statement.

6 0
3 years ago
Baylor Service Corp. redeemed $1,000 of gift cards that customers used to pay for services that were performed by the company. T
Nitella [24]

Answer:

B. Unearned Revenue and a credit to Service Revenue.

Explanation:

The adjusting entry is given below:

Unearned revenue $1,000

         To Service revenue $1,000

(Being service revenue is recorded)

Here unearned revenue is debited as it decreased the liabilities and credited the service revenue as it increased the revenue

Therefore the option b is correct

7 0
3 years ago
Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year: one was p
Eddi Din [679]

Answer: $2650

Explanation:

Using the specific identification method, its ending inventory (after the December 24 sale) will be:

Units for sale = 5 units

Units sold = 1

It should be noted that the unit that was sold was the one that was bought on July 9th.

Ending units will now be:

= $800 + ($2 × $900) + $950 - $900

= $800 + $1800 + $950 - $900

= $3550 - $900

= $2650

6 0
3 years ago
Loren Company's single product has a selling price of $15 per unit. Last year the company reported total variable expenses of $1
34kurt

Answer:

If the company applies the changes, income will increase by $28,500.

Explanation:

<u>First, we need to calculate the current number of units sold:</u>

Sales (dollars)= net income + fixed costs + total variable cost

Sales (dollars)= 30,000 + 90,000 + 180,000

Sales (dollars)= $300,000

Number of units= 300,000 / 15= 20,000

<u>Now, the selling price increases by 15%, and the number of units decreased by 10%:</u>

Unitary variable cost= 180,000/20,000= $9

Selling price= 15*1.15= $17.25

Number of units sold= 20,000*0.9= 18,000

Net operating income= 18,000*(17.25 - 9) - 90,000

Net operating income= $58,500

If the company applies the changes, income will increase by $28,500.

4 0
3 years ago
Rate the following bank accounts from most to least liquid: CD, savings account, checking account, money market account. Also ex
lutik1710 [3]

D) They are ranked by how quickly we can access the cash.

7 0
3 years ago
Read 2 more answers
Other questions:
  • The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months​ follow
    11·1 answer
  • Outsourcing and telecommuting are examples of which workplace trend?
    11·2 answers
  • A regression line is the line that best fits the data, but this does not mean that the fit is good. In other words, there can st
    9·1 answer
  • The U.S. government pays for _____ that producers would most likely not provide in the marketplace, such as building roads.
    13·2 answers
  • What restriction did the US government place on advertising in 1997?
    14·1 answer
  • Wegmans' excellent ________ far exceeds customer expectations, especially for a grocery store chain.
    12·1 answer
  • 6. What are complements? evonomics
    10·1 answer
  • You are employed by a bank with the title financial adviser. In your capacity at the bank, you are required to hold a general se
    11·1 answer
  • When the effective-interest method of amortization is used for a bond premium, the amount of interest expense for an interest pe
    13·1 answer
  • What is the primary purpose of an issuer sponsoring an american depositary receipt (adr)?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!