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What Will Be the Result If the Unit Level of Inventory

Question 346

Multiple Choice

What will be the result if the unit level of inventory increases during an accounting period?
Variant question


A) Operating profit will be the same under absorption costing and variable costing.
B) More operating profit will be reported under absorption costing than variable costing.
C) Less operating profit will be reported under absorption costing than variable costing.
D) The exact effect on operating profit cannot be determined.

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