a.) If units produced are less than units sold:

net operating income will show a loss under both absorption costing and variable costing.

absorption costing net operating income is less than variable costing net operating income.

b.) When production exceeds sales, fixed manufacturing overhead costs:

are deferred in inventory under absorption costing.

are deferred in inventory under variable costing.

c.) Armco, Inc., produces and sells five products. Which of the following costs would typically be a traceable fixed cost of a product?

Advertising costs of the product

The salary of the companys president

d.) Under variable costing, costs that are treated as period costs include:

only fixed manufacturing costs.

all fixed costs.