A business operated at 100% of capacity during its first month, with the following results:
-The amount of operating income that would be reported on the variable costing income statement is
A)$18,900
B)$18,200
C)$18,000
D)$21,000

Question

A business operated at 100% of capacity during its first month, with the following results:  ​
-The amount of operating income that would be reported on the variable costing income statement is
A)$18,900 
B)$18,200 
C)$18,000 
D)$21,000

Quizplus · Accepted Answer

Variable costing income statements only consider variable costs when calculating operating income, excluding fixed manufacturing overhead from inventory costs.

A Business Operated at 100% of Capacity During Its First