The Following Data Were Provided by Rider, Inc, Which Produces

question 171

Multiple Choice

The following data were provided by Rider, Inc, which produces a single product: For the year in question, one would expect the net operating income under absorption costing to be:

• A)higher than the net operating income under variable costing.
• B)lower than the net operating income under variable costing.
• C)the same as the net operating income under variable costing.
• D)the relation between absorption costing and variable costing net operating incomes cannot be determineD.Manufacturing exceeds sales, so absorption costing net operating income will exceed variable costing net operating income.

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