When production is equal to sales, which of the following is TRUE?
Tap an option to check your answer.
✅ Correct answer: A. No change occurs to inventories for either use absorption costing or variable costing methods
Explanation:
Option A : No change occurs to inventories for either use absorption costing or variable costing methods
Option B : The use of absorption costing produces a higher net income than the use of variable costing
Option C : The use of absorption costing produces a lower net income than the use of variable costing
Option D : The use of absorption costing causes inventory value to increase more than they would though the use of variable costing
Correct Answer : No change occurs to inventories for either use absorption costing or variable costing methods
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