Question: Consider the following statements about absorption - and variable - costing income. Which statement or combination of statements is the most accurate? Group of answer
Consider the following statements about absorption and variablecosting income. Which statement or combination of statements is the most accurate?
Group of answer choices
Yearly income reported under absorption costing will differ from income reported under variable costing if production and sales volumes differ.
In the long run, total income reported under absorption costing will often be close to that reported under variable costing, and differences in income under absorption and variable costing can often be reconciled by multiplying the change in inventory in units by the variable manufacturing overhead cost per unit.
Yearly income reported under absorption costing will differ from income reported under variable costing if production and sales volumes differ, and in the long run, total income reported under absorption costing will often be close to that reported under variable costing.
In the long run, total income reported under absorption costing will often be close to that reported under variable costing.
Differences in income under absorption and variable costing can often be reconciled by multiplying the change in inventory in units by the variable manufacturing overhead cost per unit.
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