The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: The effect on operating income if variable costing is used rather than absorption costing would be a
A)$50,000 decrease
B)$50,000 increase
C)$65,000 increase
D)$65,000 decrease

Question

The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available:  The effect on operating income if variable costing is used rather than absorption costing would be a
A)$50,000 decrease 
B)$50,000 increase 
C)$65,000 increase 
D)$65,000 decrease

Quizplus · Accepted Answer

The Answer of The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available:  The effect on operating income if variable costing is used rather than absorption costing would be a
A)$50,000 decrease 
B)$50,000 increase 
C)$65,000 increase 
D)$65,000 decrease

The Level of Inventory of a Manufactured Product Has Increased