Under Absorption Costing When Production Equals Sales in a Year

question 23

Multiple Choice

Under absorption costing when production equals sales in a year,

• A)inventory values and cost of goods sold are higher than under variable costing.
• B)inventory values and cost of goods sold are lower than under variable costing.
• C)inventory values and cost of goods sold are the same as under variable costing.
• D)inventory values are higher and cost of goods sold is lower than under variable costing.

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