The true option is : Net income is higher for absorption costing than for variable costing.
Net income is the actual amount left to an individual or a company, after taken out all other expenses.
Here, absorption cost are those cost that includes the costs like variable costs as well as the overhead costs which are fixed in nature.
This means that an increase in the closing stock balance, the net income for the absorption costing shows more than that of the variable costing.
Hence, the net income for absorption costing is higher than variable costs when the closing inventories increases throughout the year.
Learn more about net income here : https://brainly.com/question/14347332
