George Corporation Has No Beginning Inventory and Manufactures a Single

Multiple Choice

George Corporation has no beginning inventory and manufactures a single product. If the number of units produced exceeds the number of units sold, then net operating income under the absorption method for the year will:

A) be equal to the net operating income under variable costing.
B) be greater than the net operating income under variable costing.
C) be equal to the net operating income under variable costing plus total fixed manufacturing costs.
D) be equal to the net operating income under variable costing less total fixed manufacturing costs.