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The Level of Inventory of a Manufactured Product Has Increased

Question 108

Multiple Choice

The level of inventory of a manufactured product has increased by 4,000 units during a period. The following data are also available: The level of inventory of a manufactured product has increased by 4,000 units during a period. The following data are also available: What would be the effect on income from operations if absorption costing is used rather than variable costing? A) $44,000 decrease B) $44,000 increase C) $64,000 increase D) $64,000 decrease What would be the effect on income from operations if absorption costing is used rather than variable costing?


A) $44,000 decrease
B) $44,000 increase
C) $64,000 increase
D) $64,000 decrease

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