Question: Operating income reported under absorption costing will generally exceed operating income reported under variable costing for a given period in which of the following cases?

Operating income reported under absorption costing will generally exceed operating income reported under variable costing for a given period in which of the following cases?

  • If production equals sales for that period.

  • If production exceeds sales for that period.

  • If sales exceed production for that period.

  • If the variable manufacturing overhead exceeds the fixed manufacturing overhead.

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