Multiple Choice
Assuming the number of units sold and produced are the same, which of the following statements is true when comparing net income using absorption and variable costing?
A) Net income will be the same under both methods.
B) Variable costing will yield a higher net income.
C) Variable costing will have higher sales revenue.
D) Absorption costing will yield a higher net income.
E) None of these statements is true.
Correct Answer:
Verified
Correct Answer:
Verified
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