When units sold exceeds, units produced, basis a. net income under absorption costing is higher than net income under variable costing. b. net income under absorption costing is lower than net income under variable costing. c. net income under absorption costing equals net income under variable costing. d. the relationship between net income under absorption costing and net income under variable costing cannot be predicted.
When units sold exceeds, units produced, basis a. net income under absorption costing is higher than net income under variable costing. b. net income under absorption costing is lower than net income under variable costing. c. net income under absorption costing equals net income under variable costing. d. the relationship between net income under absorption costing and net income under variable costing cannot be predicted.
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 19MC: When the number of units in ending inventory increases through the year, which of the following is...
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When units sold exceeds, units produced, basis
a. net income under absorption costing is higher than net income under variable costing.
b. net income under absorption costing is lower than net income under variable costing.
c. net income under absorption costing equals net income under variable costing.
d. the relationship between net income under absorption costing and net income under
variable costing cannot be predicted.
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