Which costing method can be misleading regarding the true cost of production?

		Variable Costing
		Absorption costing
		Neither method can be misleading
		Both methods can be misleading

Match the following statements with the correct answer

- A. B. C. D.	When the amount of units sold is the same as the amount of units produced...
- A. B. C. D.	When a company produces more units then it sells...
- A. B. C. D.	When the company sells more units then it produces in the current period...

A.	the two methods report the same net operating income
B.	total expenses under absorption costing is less than under variable costing
C.	total expenses are greater under absorption costing then variable costing
D.	either absorption or variable costing can have a greater net income