Consider the Following Statements Regarding Absorption Costing and Variable Costing

Multiple Choice

Consider the following statements regarding absorption costing and variable costing.
i. Profit reported under absorption costing for a year will likely differ from that reported under variable costing because production and sales differ.
ii. Total profit when added together over a ten-year period will be approximately equal under absorption costing and variable costing because production and sales will be approximately the same.
iii. Total profit when added together over a ten-year period will be significantly different under absorption and variable costing because fixed costs will generally increase significantly over that long.
Which statement/s is/are true?

A) i
B) i and ii
C) i and iii
D) ii