Multiple Choice: 3 Points(On Scantron) 1. Product.cos under absorption costing is characteristically A. higher than under variable costing B. lower than under variable costing C. equal to variable costing D. higher sometimes and lower sometimes than variable costing E. None of the above 2. When production is equal to sales, which of the following is true? A. No change occurs to inventories for either absorption costing or variable costing methods B. The use of absorption costing produces a higher net income than the use of variable costing C. The use of absorption costing produces a lower net income than the use of variable costing D. The use of absorption costing causes inventory value to increase more than they would though the use of variable costing E. None of the above 3. A company's only product sells for $150 per unit. Its variable costs per unit are $100, and its fixed costs total 75.000, Using information trom question I, what is the company's break-even point in units? A. 500 units B. 750 units C. 1,500 units D. 3,000 units E. 1,000 units 4. Under what costing method are some of the fixed overhead costs allocated to ending inventory A. controllable costing B. variable costing C. absorption costing D. All of the above. E. None of the above 5. Variable costing income can be adjusted to absorption costing income by A. Deducting the fixed cost allocated to ending inventory B. Adding the fixed cost allocated to beginning inventory C. Adding the fixed cost allocated to ending inventory and subtracting the fixed cost previously allocated to beginning inventory D. Subtracting the fixed cost llocated to ending inventory and ading the fised cost previously allocated to Subtracting the fixed cost allocated to ending inv beginning inventory E. None of the above