If the number of units sold exceeds the number of units produced,how is operating income affected?
A)Operating income would be the same under both a variable costing and absorption costing income statement.
B)Operating income would be lower under a variable costing income statement.
C)Operating income would be higher under an absorption costing income statement.
D)Operating income would be higher under a variable costing income statement.

Question

Quizplus · Accepted Answer

The Answer of  If the number of units sold exceeds the number of units produced,how is operating income affected?
A)Operating income would be the same under both a variable costing and absorption costing income statement.
B)Operating income would be lower under a variable costing income statement.
C)Operating income would be higher under an absorption costing income statement.
D)Operating income would be higher under a variable costing income statement.

If the Number of Units Sold Exceeds the Number of Units