When Monthly Production Volume Is Constant and Sales Volume Is

question 49

Multiple Choice

When monthly production volume is constant and sales volume is less than production, net income determined with variable costing procedures will

• A)always be greater than net income determined using absorption costing.
• B)always be less than net income determined using absorption costing.
• C)be equal to net income determined using absorption costing.
• D)be equal to contribution margin per unit times units sold.

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