Q
When production is equal to sales, which of the following is TRUE?
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A
A. No change occurs to inventories for either use absorption costing or variable costing methods
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B
B. The use of absorption costing produces a higher net income than the use of variable costing
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C
C. The use of absorption costing produces a lower net income than the use of variable costing
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D
D. The use of absorption costing causes inventory value to increase more than they would though the use of variable costing
Correct Answer:
A. A. No change occurs to inventories for either use absorption costing or variable costing methods
