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For a period during which the quantity of product manufactured is less than the quantity sold, operating income reported under absorption costing will be smaller than operating income reported under variable costing. True False

Respuesta :

Zviko

Answer:

True

Explanation:

When Production units is less than units sold, the units in ending inventory decreases. This also means that the fixed costs deferred in closing inventory also decreases leading to a small profit margin in absorption costing.

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