The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available: What would be the effect on income from operations if absorption costing is used rather than variable costing?
A) $42,000 decrease
B) $42,000 increase
C) $52,500 increase
D) $52,500 decrease

Question

The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available:  What would be the effect on income from operations if absorption costing is used rather than variable costing?
A) $42,000 decrease 
B) $42,000 increase 
C) $52,500 increase 
D) $52,500 decrease

Quizplus · Accepted Answer

The Answer of The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available:  What would be the effect on income from operations if absorption costing is used rather than variable costing?
A) $42,000 decrease 
B) $42,000 increase 
C) $52,500 increase 
D) $52,500 decrease

The Level of Inventory of a Manufactured Product Has Increased