Which of the Following Statements Is True About the Difference

Multiple Choice

Which of the following statements is true about the difference in operating income between variable costing and absorption costing if the number of units in work-in-process and finished goods inventories increase?

A) There will be no difference in net income.
B) Operating income computed using variable costing will be higher.
C) The difference in operating income cannot be determined from the information given.
D) Operating income computed using variable costing will be lower.