Answer:
less than net operating income reported under absorption costing
Explanation:
When sales exceed production, inventories shrink. if inventories decrease, then some the fixed manufacturing overhead costs that had been deferred in inventory in previous period will be released to the income statement as part of cost of goods sold as well as all of the current fixed manufacturing overhead costs.
Since only the current fixed manufacturing overhead costs are expensed under variable costing, the net operating income reported under absorption costing will be less than the net operating income reported under variable cost
