When production is equal to sales, which of the following is TRUE?

A: No change occurs to inventories for either use absorption costing or variable costing methods

B: The use of absorption costing produces a higher net income than the use of variable costing

C: The use of absorption costing produces a lower net income than the use of variable costing

D: The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

No change occurs to inventories for either use absorption costing or variable costing methods

An average cost is also known as________?

A: Variable cost

B: Unit cost

C: Total cost

D: Fixed cost

Unit cost

Costs that change in response to alternative courses of action are called___________?

A: Relevant costs

B: Differential costs

C: Target costs

D: Sunk costs

Differential costs

Which of the following bases is not appropriate for apportionment of Transport departments cost ?

A: Crane hours

B: Crane value

C: Truck Mileage

D: Truck value

Crane value

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