What Is the Relationship Between Absorption Costing Net Income and Variable

question 65

Multiple Choice

What is the relationship between absorption costing net income and variable costing net income?

• 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.

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Definitions:

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