When production is equal to sales, which of the following is TRUE?

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(A) No change occurs to inventories for either use absorption costing or variable costing methods
(B) The use of absorption costing produces a higher net income than the use of variable costing
(C) The use of absorption costing produces a lower net income than the use of variable costing
(D) The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

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Correct Option is: A
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