When Production Exceeds Sales

question 20

Multiple Choice

When production exceeds sales

• A)ending inventory under variable costing will exceed ending inventory under absorption costing.
• B)ending inventory under absorption costing will exceed ending inventory under variable costing.
• C)ending inventory under absorption costing will be equal to ending inventory under variable costing.
• D)ending inventory under absorption costing may either exceed, be equal to, or be less than ending inventory under variable costing.