Absorption costing is expected to show higher net operating income.
As, absorption costing often displays larger net operating income than variable costing if output surpasses sales. Inventory levels rise when output outpaces sales, and a portion of the fixed manufacturing overhead cost for the current period is delayed in inventory to the following month due to under-absorption. In contrast, variable costing automatically deducts all of the current period's fixed production overhead costs.
To read more similar questions, refer to:
https://brainly.com/question/15353928
#SPJ4
