When production is equal to sales, which of the following is TRUE?

Question

Xaibi Aslam · Accepted Answer

No change occurs to inventories for either use absorption costing or variable costing methods

Xaibi Aslam · Answer

The use of absorption costing produces a higher net income than the use of variable costing

Xaibi Aslam · Answer

The use of absorption costing produces a lower net income than the use of variable costing

Xaibi Aslam · Answer

The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

Question #72741