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    Managerial Accounting Study Set 13
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    Exam 7: Variable Costing: a Tool for Management
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    Suppose Fewer Units Are Sold in Year 2 Than in Year
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Suppose Fewer Units Are Sold in Year 2 Than in Year

Question 59

Question 59

True/False

Suppose fewer units are sold in year 2 than in year 1. If production exceeds sales in year 2, net operating income under absorption costing could be higher in year 2 than in year 1.

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