CC Uses Absorption (Full) Costing and Its Direct Competitor, FF

Multiple Choice

CC uses absorption (full) costing and its direct competitor, FF uses variable costing for internal decision making purposes. Last year, both companies reported the same production and sales volumes. Which is true?

A) If sales are 10,000 units and production 12,000 units, CC's net income exceeds FF's
B) If sales are 10,000 units and production 10,000 units, FF's net income exceeds CC's
C) If sales are 10,000 units and production 8,000 units, FF's net income exceeds CC's
D) If sales are 12,000 units and production 10,000 units, FF's net income equals CC's
E) Unable to determine