If the number of units produced equals the number of units sold for a manufacturer, both variable costing and absorption costing income statements will yield the same operating income.

Question

Quizplus · Accepted Answer

This statement is true. When the number of units produced equals the number of units sold, there is no change in inventory levels. Therefore, there will be no difference in operating income calculated using variable costing and absorption costing methods.

If the Number of Units Produced Equals the Number of Units