1.When units produced are less than units sold, income under absorption costing is higher than income under variable costing.

a.True

b.False

2.When there are zero units in Beginning Finished Goods Inventory and the units produced are more than the units sold, the income will be lower under variable costing than under absorption costing.

a.True

b.False

3.Standard costs can be used by management to assess the reasonableness of actual costs incurred.

a.True

b.False