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If the Number of Units Sold Is Greater Than the Number

Question 50

Multiple Choice

If the number of units sold is greater than the number of units produced,


A) full costing and variable costing will yield the same net income.
B) variable costing will assign some fixed manufacturing costs to the units in ending inventory.
C) net income will be higher under variable costing than under full costing.
D) inventory levels will increase.

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