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The management of a company computes net income using both the absorption and variable costing approaches to product costing. This year, the net income under the variable costing approach was greater than the net income under the absorption costing approach. This difference is most likely the result of
A. Sales volume exceeding production volume. B. An increase in the finished goods inventory. C. Inflationary effects on overhead costs. D. A decrease in the variable marketing expenses. |