question 1 &2

1. Which of the following statements is true? a. When production exceeds sales, a manufacturing company's variable costing net operating income income will be greater than its absorption costing net operating income. b. The variable costing method is not used for external reporting purposes. c. The absorption costing method treats fixed manufacturing costs as period costs. d. All of the above are true 2. In an income statement prepared using variable costing, variable selling and administrative expenses would: a. not be used. b. be used in the computation of the contribution margin. c. be used in the computation of net operating income but not in the computation of the contribution d. be treated the same as variable manufacturing overhead