The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: What would be the effect on income from operations if variable costing is used rather than absorption costing?
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:  What would be the effect on income from operations if variable costing is used rather than absorption costing?
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:  What would be the effect on income from operations if variable costing is used rather than absorption costing?
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