rue or False QuestionTrue or false: When units produced are less than units sold, net income under absorption costing will be less than net income computed under variable costing.True false question.TrueFalse

The text you provided seems to be a bit jumbled, but it appears to be asking a true or false question about accounting. The statement is: "When units produced are less than units sold, net income under absorption costing will be less than net income computed under variable costing."

The answer to this statement is True.

Here's why:

1. Under absorption costing, all production costs (both variable and fixed) are included as product costs. This means that when a unit is produced, the fixed manufacturing overhead cost for that unit is deferred to future periods via inventory.

2. When units sold are greater than units produced, this means that some of the units sold must have been produced (and therefore costed) in a previous period.

3. Therefore, the net income under absorption costing will include the release of these deferred fixed manufacturing overhead costs from previous periods, which will increase the net income compared to variable costing, where no such deferral occurs.

So, when units produced are less than units sold, net income under absorption costing will be less than net income computed under variable costing.