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    Financial and Managerial Accounting Study Set 11
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    Exam 21: Variable Costing for Management Analysis
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    Changes in the Quantity of Finished Goods Inventory, Caused by Differences
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Changes in the Quantity of Finished Goods Inventory, Caused by Differences

Question 105

Question 105

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Changes in the quantity of finished goods inventory, caused by differences in the levels of sales and production, directly affect the amount of operating income reported under absorption costing.

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