If the Number of Units Produced Is More Than the Number

Multiple Choice

If the number of units produced is more than the number of units sold,which of the following statements is true when comparing overhead costs under absorption versus variable costing?

A) Variable costing will produce higher fixed overhead costs on the income statement.
B) Absorption costing will produce higher fixed overhead costs on the income statement.
C) Overhead costs on the income statement are the same under both methods.
D) Absorption costing will have higher variable overhead costs on the income statement.
E) None of the answer choices is correct.