Green Enterprises Produces a Single Product

question 40

Multiple Choice

Green Enterprises produces a single product. The following data were provided by the company for the most recent period:
-For the period above,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 net operating income and variable costing net operating income cannot be determined.