When Comparing Absorption and Variable Costing Which of the Following

question 30

Multiple Choice

When comparing absorption and variable costing which of the following is false?

• A)The difference between absorption costing and variable costing is the treatment of fixed manufacturing overhead.
• B)Selling and administrative costs are period costs under both absorption and variable costing.
• C)Companies that use just-in-time processing techniques will have significant differences between absorption and variable-costing net income.
• D)Absorption costing will show a higher net income than variable costing whenever there are more units produced than sold.

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