Multiple Choice
The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available: The effect on operating income if variable costing is used rather than absorption costing would be a(n)
A) $80,000 decrease
B) $80,000 increase
C) $104,000 decrease
D) $104,000 increase
Correct Answer:

Verified
Correct Answer:
Verified
Q90: The contribution margin and the manufacturing margin
Q91: For a period during which the quantity
Q92: Match each of the following descriptions with
Q93: On the variable costing income statement, deduction
Q94: A business operated at 100% of capacity
Q96: Which of the following terms is commonly
Q97: On the variable costing income statement, all
Q98: Which of the following would be included
Q99: For internal decision-making purposes, managers may use
Q100: Variable costing is appropriate only for manufacturing