When Units Sold Exceeds Units Produced

Multiple Choice

When units sold exceeds units produced

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.