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In comparing the absorption and variable cost methods, each of the following statements is true except: A. When inventory increases over the period, variable net
In comparing the absorption and variable cost methods, each of the following statements is true except:
A.
When inventory increases over the period, variable net income will exceed absorption net income.
B.
Variable costing charges fixed overhead costs to the period they are incurred.
C.
Only the absorption method may be used for external financial reporting.
D.
Selling, general, and administrative (SG&A) fixed expenses are not included in inventory in either method.
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