When all units produced are sold,there is no difference in operating income between absorption costing and variable costing.

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Quizplus · Accepted Answer

When all units produced are sold, there is no difference in operating income between absorption costing and variable costing as both methods treat fixed manufacturing costs as period costs and allocate only variable manufacturing costs to units produced. Therefore, all costs are expensed in the period in which they are incurred and there is no difference in operating income between the two methods.

When All Units Produced Are Sold,there Is No Difference in Operating