The amount of income under absorption costing will equal the amount of income under variable costing when units manufactured
A)exceed units sold
B)equal units sold
C)are less than units sold
D)are equal to or greater than units sold

Question

Quizplus · Accepted Answer

Under both absorption and variable costing, income will be the same when the units manufactured equal the units sold because there will be no change in inventory levels, thus no difference in how fixed manufacturing overheads are treated.

The Amount of Income Under Absorption Costing Will Equal the Amount