Assuming That the Number of Units Produced Is Greater Than

question 15

Multiple Choice

Assuming that the number of units produced is greater than the number of units sold,which of the following statements is true when comparing net income using absorption and variable costing?

• A) Absorption costing will yield a higher net income.
• B) Variable costing will yield a higher net income.
• C) Net income will be the same under both methods.
• D) Sales revenue will be less using absorption costing.

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