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When Comparing the Operating Incomes Between Absorption Costing and Variable

Question 98

Multiple Choice

When comparing the operating incomes between absorption costing and variable costing, and beginning finished inventory exceeds ending finished inventory, it may be assumed that


A) sales increased during the period.
B) variable cost per unit is less than fixed cost per unit.
C) absorption costing income exceeds variable costing income.
D) variable costing income exceeds absorption costing income.
E) variable costing income equals absorption costing income.

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