1. If production exceeds sales, the net income with respect to absorption costing and variable costing.

A) is the same

B) lower under absorption

C) higher under absorption

D) higher under variable

2. If there are no units in finished goods ending inventory and cost of goods manufactured is less than cost of goods sold, then there must be units in:

A) finished goods beginning inventory

B) work in process ending inventory

C) work in process beginning inventory

D) none of the above