What is net income computed under absorption costing


Question:

Net income computed under absorption costing will be:

(a) Higher than net income under variable costing in all cases.

(b) Equal to net income under variable costing in all cases.

(c) Higher than net income under variable costing when units produced are greater than units sold.

(d) Higher than net income under variable costing when units produced are less than units sold.

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Accounting Basics: What is net income computed under absorption costing
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