Assuming More Items Are Sold During a Period Than Are

Multiple Choice

Assuming more items are sold during a period than are produced in that same period, which of the following will result?

A) Net income using the absorption costing method will be equal to net income using the variable costing method.
B) Net income using the absorption costing method will be less than net income using the variable costing method.
C) Net income using the absorption costing method will be greater than net income using the variable costing method.
D) Net income using the absorption costing method will be randomly different from net income using the variable costing method.