"Absorption$-$costing income exceeds$$ variable$-$costing income when the number of units sold exceeds the number of units$$ produced." Do you$$ agree? Explain.

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Part $1$

A$.$

Yes.$$ Absorption$-$costing income always exceeds$$ variable$-$costing, the decrease or increase of inventory has no effect.

B$.$

No$.$ When the number of units sold exceeds the number$$ produced, that$$ is$,$ when inventory$$ decreases, variable$-$costing income exceeds$$ absorption$-$costing income.

C$.$

No$.$ Variable$-$costing income always exceeds$$ absorption$-$costing, the decrease or increase of inventory has no effect.

D$.$

Yes. When the number of units sold exceeds the number$$ produced, that$$ is$,$ when inventory$$ decreases, absorption$-$costing income exceeds$$ variable$-$costing income.