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Management Sciences
MEDIUM
ENGLISH
Management Sciences
When production is equal to sales, which of the following is TRUE?
No change occurs to inventories for either use absorption costing or variable costing methods
Correct answer
B
The use of absorption costing produces a higher net income than the use of variable costing
Option B
C
The use of absorption costing produces a lower net income than the use of variable costing
Option C
D
The use of absorption costing causes inventory value to increase more than they would though the use of variable costing
Option D
Correct answer: A
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