Operating income reported under variable costing will generally exceed operating income reported under absorption costing...

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Accounting

Operating income reported under variable costing will generally exceed operating income reported under absorption costing for a given period in which of the following cases?

Multiple Choice

  • If production exceeds sales for that period.

  • If the variable manufacturing overhead exceeds the fixed manufacturing overhead.

  • If production equals sales for that period.

  • If sales exceed production for that period.

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