Q: Consider the following statements regarding absorption costing and variable costing. Select the statements (if any) that are likely to be true for a typical business entity.

(Group of answer choices)

a.The difference in the profit reported under absorption costing and variable costing is likely to accumulate from year to year and become larger over a ten-year period.

b.Total profit when added together over a ten-year period will be significantly different under absorption and variable costing because fixed costs will generally increase significantly over that time.

c.Profit reported under absorption costing for a year may differ from that reported under variable costing because production volume may differ relative to sales volume from one reporting period to the next.

d.Total profit when added together over a ten-year period will be approximately equal under absorption costing and variable costing because the total production volume and the total sales volume over such a long period are likely to be the same.