When production equals sales, which statement is true?

1. A Option A: The use of absorption costing produces a lower net income than the use of variable costing
2. B Option B: The use of absorption costing causes inventory value to increase more than they would though the use of variable costing
3. C Option C: No change occurs to inventories for either use absorption costing or variable costing methods
4. D Option D: The use of absorption costing produces a higher net income than the use of variable costing

Answer checked 11 October 2026 · How we write and check questions