The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available: The effect on operating income if absorption costing is used rather than variable costing would be a
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:  The effect on operating income if absorption costing is used rather than variable costing would be a
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:  The effect on operating income if absorption costing is used rather than variable costing would be a
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