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| Dawn Company has significant fixed overhead costs in the manufacturing of its sole product, auto mufflers. For internal reporting purposes, in which one of the following situations would ending finished goods inventory be higher under direct (variable) costing rather than under absorption costing? A. If more units were produced than were sold during a given year. B. If more units were sold than were produced during a given year. C. In all cases when ending finished goods inventory exists. D. None of these situations. |