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If the number of units produced exceeds the number of units sold, then net operating income under absorption costing will: a) Be equal to the net ope...

Question:

If the number of units produced exceeds the number of units sold, then net operating income under absorption costing will:

a)            Be equal to the net operating income under variable costing.

b)            Be greater than net operating income under variable costing.

c)            Be equal to the net operating income under variable costing plus total fixed manufacturing costs.

d)            Be equal to the net operating income under variable costing less total fixed manufacturing costs.

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