Green Enterprises Produces a Single Product

Multiple Choice

Green Enterprises produces a single product. The following data were provided by the company for the most recent period:
-For the period above,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 net operating income and variable costing net operating income cannot be determined.