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6-4 What arguments in favor of treating fixed manufacturing overhead costs as product costs? 6-6 If the units produced and unit sales are equal, which

6-4 What arguments in favor of treating fixed manufacturing overhead costs as product costs?

6-6 If the units produced and unit sales are equal, which method would you expet to show the higer operating income, variable costing or absorption costing? Why?

6-7 If the units produced exceed unit sales, which method would you expect to show the higher net operating income, variable costing or absorptioncosting? Why?

6-8 If fixed manufacturing overhead costs are relaesed from inventory under absorption costing, what does this tell you about the level of production in relation to the level of sales?

6-9 Under absorption costing, how is it possible to increase net operating income without increasing sales?

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