The use of either absorption or variable costing will make little difference in companies
A) with large inventories.
B) using just-in-time inventory methods.
C) with high fixed costs.
D) with high variable costs.

Question

Quizplus · Accepted Answer

Just-in-time inventory methods rely on minimizing inventory levels, which means that there is little to no difference between absorption and variable costing as both methods focus on the cost of goods sold based on the actual usage of inventory. Therefore, choice B is the best answer.

The Use of Either Absorption or Variable Costing Will Make