Business, 08.04.2020 01:38 robert7248

Which of the following situations would cause variable-costing income to be lower than absorption-costing income? Selling expenses increased by 10% during the accounting period. Units sold equaled 39,000 and units produced equaled 42,000. Sales prices decreased by $7 per unit during the accounting period. Units sold equaled 55,000 and units produced equaled 49,000. Units sold and units produced were both 42,000.

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Answer from: sarinawhitaker

Units sold equaled 39,000 and units produced equaled 42,000.

Explanation:

The reason is that operating income will be lower under variable costing than absorption costing when there is a rise in the the unit level of inventory during an accounting period.

From the question, the 42,000 units of production is 3,000 units greater than the 39,000 units sold. This implies that there is an increase in the unit of inventory level. This usually cause the variable-costing income to be lower than absorption-costing income.

Answer from: miya257916

Units sold equaled 55,000 and units produced equaled 49,000

Explanation:

Variable-costing income and Absorption-costing income differ due to the amount of fixed overheads that are differed in inventory.

Note : Absorption costing include fixed costs in product costing

Differences in Variable-costing income and Absorption-costing income are only visible is Production does not equal Sales.

If Production equals Sales there would be no any differences

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

Answer from: Quest

answer; ///global;

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