two parts: two parts: If variable costing is in use, one would expect: Select on

Question

two parts:

two parts: If variable costing is in use, one would expect: Select one: a. net income to be erratic over the three year period net income to be the same for each year the break-even point to be lower in Year 2 than in Year 3 net income to be higher in Year 2 than in Year 1 Not yet answered Marked out of 2.00 lag question Taking the three years together, one would expect total net income to be: Select one: the same under either absorption or variable costing higher under absorption costing than under variable costing lower under absorption costing than under variable costing none of the above

Explanation / Answer

c. the break-even point to be lower in Year 2 than in Year 3

b. higher under absorption costing than under variable costing

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