Question

If the production is less than sales so, an operating income under absorption costing will be called

a.

higher income

b.

zero dividends

c.

negative income value

d.

lower income

Answer: (d).lower income

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. If the production is less than sales so, an operating income under absorption costing will be called

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. If the inventory level decreases then operating income, under variable costing, will be reported

Q. If target operating income is $38000, contribution margin per unit is $400, then the number of units must be sold to earn targeted operating income will be

Q. The managers using capacity planning do not make

Q. The budgeted fixed manufacturing cost is divided by budgeted fixed manufacturing cost per unit to calculate

Q. The fixed rate of calculation is based on the

Q. If the contribution margin per unit is $5000, the selling price is $1500 and the variable manufacturing cost per unit is $1200, then per unit cost of marketing will be

Q. An approach in which restating the amounts, in general ledgers by using actual cost rates, is classified as

Q. If the direct material cost of goods sold is $7500, and through contribution is $15650, then revenues will be

Q. The capacity utilization of the business, to satisfy average customer's demand, for current budget period of time is termed as

Q. If the total sales are $250000, the beginning inventory is $25000 and the ending inventory is $25000, then total production would be

Q. An approach in which, the over allocated and under allocated is spread in, ending balance of finished goods control, is called

Q. If the capacity utilization and its cost are fixed in product costing, the capacity management is

Q. The budgeted fixed manufacturing cost for per unit, which is used to measure per unit cost of supplying is called

Q. If the revenues are $25000 and through put contribution is $12000, then direct material cost of goods sold will be

Q. In absorption costing, the contribution margin per unit, fixed operating and manufacturing costs are all the dependents of

Q. In actual costing, an actual quantity of used inputs are multiplied with actual prices to calculate

Q. Throughout the period costs, costing methods are treated as

Q. The recalculation of demand can be avoided, by using practical capacity while calculation of budgeted fixed manufacturing per unit cost as

Q. The difference between absorption and variable costing is the accountability of

Q. If the budgeted fixed manufacturing cost is $124000 and the per unit cost is $124, then budgeted production units can be

Recommended Subjects

Are you eager to expand your knowledge beyond Cost Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!