Question: When comparing the operating incomes between absorption costing and variable costing, and ending finished inventory exceeds beginning finished inventory, it may be assumed that ________.

When comparing the operating incomes between absorption costing and variable costing, and ending finished inventory exceeds beginning finished inventory, it may be assumed that ________.

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Part 1

A.

absorption costing operating income exceeds variable costing operating income

B.

variable cost per unit is more than fixed cost per unit

C.

sales decreased during the period

D.there is a favorable

productionvolume

variance

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