When production exceeds sales, which of the following is true? a. No change occurs to inventories for

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When production exceeds sales, which of the following is true?

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

b. Use of absorption costing produces a higher income than the use of variable costing.

c. Use of absorption costing produces a lower income than the use of variable costing.

d. Use of absorption costing causes inventory value to decrease more than it would through the use of variable costing.

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Managerial Accounting

ISBN: 9781259726972

6th Edition

Authors: John Wild, Ken Shaw

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