income ____________ when there is zero beginning inventory and all inventory units produced are sold…

income ____________ when there is zero beginning inventory and all inventory units produced are sold. multiple choice will be lower under variable costing than absorption costing will be the same under both variable and absorption costing will be higher under variable costing than absorption costing will be higher than gross profit under variable costing will be lower than administrative costs under absorption costing

income ____________ when there is zero beginning inventory and all inventory units produced are sold. multiple choice will be lower under variable costing than absorption costing will be the same under both variable and absorption costing will be higher under variable costing than absorption costing will be higher than gross profit under variable costing will be lower than administrative costs under absorption costing

Answer

Brief Explanations:

Under variable costing, fixed manufacturing overhead is expensed in the period it is incurred. Under absorption costing, fixed manufacturing overhead is included in product cost and deferred in inventory if units are produced but not sold. When there is zero beginning inventory and all units produced are sold (i.e., production = sales), the fixed manufacturing overhead is expensed in full under both costing methods (under absorption costing, since all units are sold, the fixed manufacturing overhead in product cost is all expensed as cost of goods sold). So, income will be the same under both variable and absorption costing.

Answer:

Will be the same under both variable and absorption costing