When Is Net Income the Largest

question 71

Multiple Choice

When is net income the largest?

• A)Absorption costing net income exceeds variable costing net income when units produced and sold are equal.
• B)Variable costing net income exceeds absorption costing net income when units produced exceed units sold.
• C)Absorption costing net income exceeds variable costing net income when units produced are less than units sold.
• D)Absorption costing net income exceeds variable costing net income when units produced are greater than units sold.