Under variable costing: a. Net operating income will always be higher than under absorption costing. O b. Net operating income will tend to move up and down in response to changes in levels of production. O . Inventory costs will be lower than under absorption costing. O d. Net operating income will tend to vary inversely with production changes

Under variable costing: a. Net operating income will always be higher than under absorption costing. O b. Net operating income will tend to move up and down in response to changes in levels of production. O . Inventory costs will be lower than under absorption costing. O d. Net operating income will tend to vary inversely with production changes

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 20MC: Product costs under variable costing are typically: A. higher than under absorption costing B. lower...

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Question

Under variable costing:
a. Net operating income will always be higher than under absorption costing.
b. Net operating income will tend to move up and down in response to changes in levels of production.
O c.Inventory costs will be lower than under absorption costing.
d. Net operating income will tend to vary inversely with production changes

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