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    Business
  3. Study Set
    Contemporary Accounting
  4. Exam
    Exam 14: Costs and Cost Behaviour
  5. Question
    When Sales Exceeds Production, Absorption Costing Shows a Higher Profit
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When Sales Exceeds Production, Absorption Costing Shows a Higher Profit

Question 50

Question 50

True/False

When sales exceeds production, absorption costing shows a higher profit than variable costing because a portion of fixed costs are charged to inventories and thereby deferred to future periods.

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