MCQ Practice

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

Subject: AccountingTopic: Accounting
A

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

B

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

C

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

D

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

Correct Answer: A