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The Difference Between the Variable Ending Inventory Cost and the Absorption

Question 95

Multiple Choice

  The difference between the variable ending inventory cost and the absorption ending inventory cost is: A) 800 units times $15 per unit indirect manufacturing cost. B) 800 units times $10 per unit material cost. C) 800 units times $20 per unit variable conversion cost plus $15 per unit indirect manufacturing cost. D) 800 units times $20 per unit variable conversion cost plus $15 per unit indirect manufacturing cost plus $16.67 per unit indirect operating costs. The difference between the variable ending inventory cost and the absorption ending inventory cost is:


A) 800 units times $15 per unit indirect manufacturing cost.
B) 800 units times $10 per unit material cost.
C) 800 units times $20 per unit variable conversion cost plus $15 per unit indirect manufacturing cost.
D) 800 units times $20 per unit variable conversion cost plus $15 per unit indirect manufacturing cost plus $16.67 per unit indirect operating costs.

Correct Answer:

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