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Which of the following is correct in regards to variable costing? a) Variable costing is more compatible with cost-volume-profit (CVP) analysis than is absorption costing.

Which of the following is correct in regards to variable costing?

a) Variable costing is more compatible with cost-volume-profit (CVP) analysis than is absorption costing.

b) Net operating income computed using absorption income will always be LESS than net operating income computed using variable costing.

c) Fixed manufacturing overhead is treated as a product cost.

d) An increase in fixed manufacturing overhead will affect the unit product cost.

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