Assume that the predetermined fixed overhead rate per unit remains the same from 2019 to 2020 and inventory decreases in 2020. Which of the following statements is true?

Select one:

The fixed overhead expended in 2020 under absorption costing will be greater than that expended under variable costing.

It is impossible to determine what effect the decrease in inventory will have on net profit under absorption costing.

The amount of fixed overhead expended will be the same under both methods.

The fixed overhead expended in 2020 under variable costing will be greater than that expended under absorption costing.