Multiple Choice QuestionWhen units produced equals units sold, income under variable costing as compared to net income under absorption costing will beMultiple choice question.greater thanequal toless thannot determinable

The answer is "equal to".

Here's why:

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 is included in the inventory value and is not expensed. It only becomes an expense (cost of goods sold) when the unit is sold.

On the other hand, under variable costing, only variable production costs are included as product costs. Fixed manufacturing overhead is treated as a period cost and is expensed in the period it is incurred.

When units produced equals units sold, there is no difference between the number of units produced and the number of units sold. This means that all the units produced have been sold and there is no ending inventory.

Therefore, under both absorption and variable costing methods, the cost of goods sold will be the same because all produced units are sold. As a result, the income under variable costing will be equal to the net income under absorption costing.