In Its First Year of Business,Greenlam Inc

Multiple Choice

In its first year of business,Greenlam Inc.produced 600 units and sold 400 units.If Greenlam uses variable costing,________.

A) its operating profit for the period will be higher than absorption costing
B) its operating profit for the period will be lower than absorption costing
C) its value of ending inventory reported in the balance sheet will be higher than absorption costing
D) its operating profit will be the same under absorption costing