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Fixed Co C) Sales Revenue D) Sales Reverue -Elxed Costs Operating Income 25) A Variable Costing Income Ssatement s A) filing income tax retums C) determining the amount of gross prof D) internal decision-making purposes 26) How will Operating Income react when units produced equal units sold with regard to Absorption and Variable costing A) Absorption Operating Income will be lower than Variable Operating Income U) Absorption Operating Income will be higher than Variable Operating Income C) Operating Income under both Absorption costing and Variable costing will be equal. 27) How will Operating Income react when units produced are greater than units sold with regard to Absorption and Variable costing A) Absorption Operating Income will be lower than Variable Operating Income B) Absorption Operating Income will be higher than Variable Operating Income C) Operating Income under both Absorption costing and Variable costing wil be equal. D) Operating Income is unaffected by either costing methodology 28) How will Operating Income react when units produced is less than units sold with regard to Absorption and Variable costing A) Absorption Operating Income will be lower than Variable Operating Income. B) Absorption Operating Income will be higher than Variable Operating Income. C) Operating Income under both Absorption costing and Variable costing will be equa. D) Operating Income is unaffected by either costing methodology. 29) A budget represents a financial plan that managers use to coordinate a business's activities. A) True B) False 30) Budgets provide benchmarks to motivate employees and help managers evaluate performance. A) True B) False ACCT 2302-18SP -Exam 2

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