When comparing the operating incomes between absorption costing and variable costing and beginning finished inventory exceeds ending finished inventor

ACCOUNTING

Multiple Choice

When comparing the operating incomes between absorption costing and variable costing and beginning finished inventory exceeds ending finished inventory, it may be assumed that

a. sales increased during the period.

b. variable cost per unit is less than fixed cost per unit.

c. there is an unfavorable production-volume variance.

d. variable costing operating income exceeds absorption costing operating income.

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