When all the units produced are sold the operating income ca

When all the units produced are? sold, the operating income calculated under absorption costing is higher when compared to the operating income calculated under variable costing. Assume that there is no beginning Finished Goods Inventory.

True

False

Solution

When all the units produced are? sold, the operating income calculated under absorption costing will be equal to to the operating income calculated under variable costing. So the given statement is FALSE