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Which of the following statements is true? When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs deferred in inventory under

Which of the following statements is true? When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs deferred in inventory under absorption costing should be deducted from variable costing net operating income to arrive at the absorption costing net operating income. Lean production should result in reduced inventories. If lean production is successfully implemented, the difference in net operating income computed under the absorption and variable costing methods should be reduced

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