Inventory values calculated using variable costing as opposed to absorption costing will generally be
A)equal.
B)less.
C)greater.
D)twice as much.

Question

Quizplus · Accepted Answer

Under variable costing, only variable manufacturing costs are included in the product costs, whereas absorption costing includes both variable and fixed manufacturing costs. As a result, inventory values calculated using variable costing will generally be less than those calculated using absorption costing.

Inventory Values Calculated Using Variable Costing as Opposed to Absorption