There is no difference between variable-costing and absorption-costing income if the inventory level does not change.

Question

Quizplus · Accepted Answer

If the inventory level remains constant, the same amount of fixed manufacturing overhead will be absorbed into the cost of goods sold under both variable-costing and absorption-costing methods. Therefore, there will be no difference in income between the two methods.

There Is No Difference Between Variable-Costing and Absorption-Costing Income If