Income ________ when there is zero beginning inventory and all inventory units produced are sold.
A) Will be lower under variable costing than absorption costing
B) Will be the same under both variable and absorption costing
C) Will be higher under variable costing than absorption costing
D) Will be higher than gross margin under variable costing

Question

Quizplus · Accepted Answer

When there is zero beginning inventory and all units produced are sold, there is no difference in inventory levels to affect income, so income will be the same under both variable and absorption costing.

Income ________ When There Is Zero Beginning Inventory and All