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When production is equal to sales, which of the following is TRUE?
Accountingmedium
No change occurs to inventories for either use absorption costing or variable costing methods
BThe use of absorption costing produces a higher net income than the use of variable costing
CThe use of absorption costing produces a lower net income than the use of variable costing
DThe use of absorption costing causes inventory value to increase more than they would though the use of variable costing
Correct Answer: A. No change occurs to inventories for either use absorption costing or variable costing methods
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