Answer
If fixed manufacturing overhead costs are released from inventory under absorption costing, this tells you that inventories decrease, which means that units produced were greater than units sold.
Work Step by Step
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Managerial Accounting (15th Edition)
by Garrison, Ray; Noreen, Eric, Brewer, Peter
Published by
McGraw-Hill Education
ISBN 10:
007802563X
ISBN 13:
978-0-07802-563-1
Chapter 6 - Variable Costing and Segment Reporting: Tools for Management - Questions - Page 259: 6-8
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