The following data were provided by Green Enterprises for the most recent period:
-For the period noted,which of the following statements best describes the relationship between the operating income under absorption costing and under variable costing?
A) Absorption costing operating income would be higher than the operating income under variable costing.
B) Absorption costing operating income would be lower than the operating income under variable costing.
C) Absorption costing operating income would be the same as the operating income under variable costing.
D) The relationship between absorption costing operating income and variable costing operating income cannot be determined without additional information.
Correct Answer:
Verified
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