For a period during which the quantity of inventory at the end equals the inventory at the beginning,income from operations reported under variable costing will equal income from operations reported under absorption costing.

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Quizplus · Accepted Answer

This is true because when the quantity of inventory at the end equals the inventory at the beginning, there is no change in the inventory level during the period. As a result, the difference between variable costing and absorption costing is eliminated, and both methods will report the same income from operations. However, if there is a change in inventory level, the two methods may report different income from operations.

For a Period During Which the Quantity of Inventory at the End