In the variable cost format, the income statement shows the fixed manufacturing overhead as:

A. a fixed cost

B. a product cost

C. an inventoriable cost

D. None of the above

If production equals sales and there are no beginning or ending inventories:

A. variable costing gives a higher net income than absorption costing

B. variable costing gives a lower net income than absorption costing

C. net income is the same under each assumption

D. none of the above

The manufacturing overhead budget consists of overhead

A. Variable costs

B. Fixed costs

C. Both A and B

D. None of the above