If the Number of Units Sold Exceeds the Number of Units

question 309

Multiple Choice

If the number of units sold exceeds the number of units produced, how is operating income affected?

• A) Operating income would be the same under both a variable costing and absorption costing income statement.
• B) Operating income would be lower under a variable costing income statement.
• C) Operating income would be higher under an absorption costing income statement.
• D) Operating income would be higher under a variable costing income statement.

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