If the Number of Units Produced Is Less Than the Number

Multiple Choice

If the number of units produced is less than the number of units sold,which of the following statements is true when comparing operating profit under absorption versus variable costing?

A) Sales revenue will be less when absorption costing is used.
B) Absorption costing will produce a higher operating profit.
C) Operating profit is the same under both methods.
D) Variable costing will produce a higher operating profit.
E) None of the answer choices is correct.