The difference in income between absorption and variable costing can be explained by the change in finished-goods inventory (in units) multiplied by the standard fixed manufacturing overhead rate.
Required:
Explain why this calculation accounts for the difference noted.

Question

The difference in income between absorption and variable costing can be explained by the change in finished-goods inventory (in units) multiplied by the standard fixed manufacturing overhead rate.
Required: 
Explain why this calculation accounts for the difference noted.

Quizplus · Accepted Answer

The Answer of The difference in income between absorption and variable costing can be explained by the change in finished-goods inventory (in units) multiplied by the standard fixed manufacturing overhead rate.
Required: 
Explain why this calculation accounts for the difference noted.

The Difference in Income Between Absorption and Variable Costing Can