For every unit that is produced but not sold, absorption costing "hides" some of the fixed manufacturing overhead in ending Finished Goods Inventory. True or False

When more units are sold than produced, operating income is less under absorption costing. True or False

Following GAAP, the income statement issued to investors and creditors must ________.

a. be prepared in the contribution margin format

b.	be prepared in the traditional format

c.	show the value of contribution margin

d.	be prepared using variable costing