I. Absorption costing inventory is always higher than variable costing inventory. II. Absorption costing income is always higher than variable costing income. a. True, False b. False, False c. False, True d. True, True 2. Which of the following costs are treated as product costs under absorption costing method? a. Fixed manufacturing overhead and both variable & fixed selling and administrative expenses. b. Only variable manufacturing overhead and variable selling and administrative expenses. c. Both variable and fixed manufacturing overhead. d. Only variable manufacturing costs 3. When sales exceed production, fixed manufacturing overhead costs a. Are released from the inventory under absorption costing b. Are deferred in inventory under absorption costing c. Are released from the inventory under variable costing d. Are deferred in inventory under variable costing 4. Which of the following is not a type of absorption costing? a. Direct costing c. Normal costing b. Actual costing d. None of these 5. Variable costing and absorption costing will show the same income when there are no a. beginning inventory c. variable costs b. Fixed costs d. none of these