The Following Data Were Provided by Rider, Inc, Which Produces

Multiple Choice

The following data were provided by Rider, Inc, which produces a single product: For the year in question, one would expect the net operating income under absorption costing to be:

A) higher than the net operating income under variable costing.
B) lower than the net operating income under variable costing.
C) the same as the net operating income under variable costing.
D) the relation between absorption costing and variable costing net operating incomes cannot be determineD.Manufacturing exceeds sales, so absorption costing net operating income will exceed variable costing net operating income.