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The Level of Inventory of a Manufactured Product Has Increased

Question 153

Multiple Choice

The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: What would be the effect on income from operations if variable costing is used rather than absorption costing? A) $50,000 decrease B) $50,000 increase C) $65,000 increase D) $65,000 decrease What would be the effect on income from operations if variable costing is used rather than absorption costing?


A) $50,000 decrease
B) $50,000 increase
C) $65,000 increase
D) $65,000 decrease

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