Net operating income computed using variable costing would exceed net operating income computed using absorption costing if:
Selected: a. units sold exceed units produced. This answer is correct.
b. units sold are less than units produced.
c. units sold equal units produced.
d. the average fixed cost per unit is zero.
Correct! In the periods where more units are sold than produced, the net income would be higher under variable costing since there will not be manufacturing fixed costs being offset against the sales.