Which of the Following Statements Is Not True of Absorption

Multiple Choice

Which of the following statements is not true of absorption costing?

A) When sales equal production, absorption costing yields the same profit as variable costing.
B) When production exceeds sales, absorption costing shows a lower profit than variable costing does.
C) When sales exceed production, absorption costing shows a lower profit than variable costing does.
D) Absorption costing allocated both fixed and variable overheads to product cost.