When the number of units produced is equal to the number of units sold,net income reported under variable costing is identical to net income reported under absorption costing.

Question

Quizplus · Accepted Answer

This statement is true. When production equals sales, all variable costs and fixed manufacturing overhead costs are expensed in the period in which they are incurred under both variable and absorption costing. Therefore, net income reported under both methods will be identical.

When the Number of Units Produced Is Equal to the Number