Whitney, Inc

Multiple Choice

Whitney, Inc., produces a single product. The following data pertain to one month's operations:
-For the month referred to above,net operating income under variable costing will be:

A) higher than net operating income under absorption costing.
B) lower than net operating income under absorption costing.
C) the same as net operating income under absorption costing.
D) The relation between variable costing and absorption costing net operating income cannot be determined.