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Which of the Following Statements Is True for a Company

Question 49

Multiple Choice

Which of the following statements is true for a company that uses variable costing?


A) The unit product cost changes as a result of changes in the number of units manufactured.
B) Both variable selling costs and variable production costs are included in the unit product cost.
C) Net operating income moves in the same direction as sales.
D) Net operating income is greatest in periods when production is highest.

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