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Setler [38]
3 years ago
5

If units produced are greater than units sold: Multiple Choice

Business
2 answers:
jolli1 [7]3 years ago
8 0

Answer:

The correct option is 1

Explanation:

In Absorption costing, all production costs: direct labor, direct materials, and factory overhead whether fixed or variable are considered products costs.

In variable costing, only direct materials, direct labor and variable factory overhead are considered product costs.

So if units are produced are greater than units sold Absorption cost will be greater than Variable cost and vice versa.

jenyasd209 [6]3 years ago
5 0

Answer:

The correct answer is option 1

Explanation:

If units produced are greater than units sold absorption costing net operating income is greater than variable costing net operating income.:

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On December 31 of the current​ year, Pilozzi Company has the following information​ available:
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