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9. Which one of the following statements is correct in respect of the income statement of a company using direct costing and using absorption costing

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9. Which one of the following statements is correct in respect of the income statement of a company using direct costing and using absorption costing when there is neither opening nor closing inventory? a. Absorption costing will result in higher net profit. b. Direct costing will result in higher net profit. c. Both methods will result in the same net profit. d. There will be a negligibly small difference in net profit between the two methods. 1

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