Question

Based on the following assumptions and financial information, select all the true statements Year 1 Year 2 Year 3 Year 4 Production in units 4,000 6,000 8,000 4,000 Sales in units 4,000 3,000 3,000 11,000 (1) Selling price per unit, variable cost per unit, and total fixed costs do not change during the four years. (2) There is no beginning inventory at Year 1. Under variable costing, net operating income will be less in Year 1 than in Year 2. Because of the changes in production level, under absorption costing the unit product cost will change each year, Under absorption costing, net operating income will be the same in Year 2 and Year Under variable costing, net operating income will be the same in Year 2 and Year 3. The combined four year net operating income would be the same under variable and absorption costing.

Answer 1

Answer)	correct statements
	Because of the changes in production level ,under absorption costing the
	unit product cost will change every year
	under variable costing ,net operating income will be the same in year 2 and
	year 3
	the combined four year net operating income would be the same under
	variable and absorption costing