When Production Is Greater Than Sales

Multiple Choice

When production is greater than sales

A) net income under absorption costing will be greater than or less than net income under variable costing depending on the selling and administration costs.
B) net income under absorption costing will be equal to net income under variable costing.
C) net income under absorption costing will be less than net income under variable costing.
D) net income under absorption costing will be greater than net income under variable costing.