As a company reduces its inventory levels,operating income differences between absorption costing and variable costing become immaterial.

Name: As a company reduces its inventory levels,operating income differences between absorption costing and variable costing become immaterial.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When inventory levels decrease, the fixed manufacturing costs deferred in inventory under absorption costing are released, aligning operating income more closely with variable costing.

As a Company Reduces Its Inventory Levels,operating Income Differences Between