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In General, If Inventory Increases During an Accounting Period, ________

Question 10

Multiple Choice

In general, if inventory increases during an accounting period, ________.


A) variable costing will report less operating income than absorption costing
B) absorption costing will report less operating income than variable costing
C) variable costing and absorption costing will report the same operating income
D) both variable costing and absorption costing will show losses

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