When the Units Produced Exceeds the Units Sold

question 35

Multiple Choice

When the units produced exceeds the units sold

• A)Ending inventory on the balance sheet is lower under absorption costing than under variable costing.
• B)Ending inventory on the balance sheet is higher under absorption costing than under variable costing.
• C)Ending inventory on the balance sheet is the same under absorption costing and variable costing.
• D)Cannot be determined with the information given.

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