There is no difference between variable-costing operating income and absorption-costing operating income if there is no ________.
A) beginning inventory of finished goods
B) ending inventory of finished goods
C) variable overhead costs
D) change in finished goods inventory during the period

Question

Quizplus · Accepted Answer

The difference between variable costing and absorption costing occurs when there is a change in finished goods inventory during the period. If there is no change in finished goods inventory, then variable-costing operating income and absorption-costing operating income will be the same. Therefore, options A, B, and C are not the correct answers.

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