If inventory has not increased or decreased,but has stayed the same,operating income will be higher under variable costing than it is under absorption costing.

Question

Quizplus · Accepted Answer

When inventory levels remain constant, operating income will be the same under both variable and absorption costing because there are no changes in inventory to affect the allocation of fixed manufacturing overhead costs.

If Inventory Has Not Increased or Decreased,but Has Stayed the Same,operating