The Difference in Variable Costing Operating Income and Absorption Costing

Multiple Choice

The difference in variable costing operating income and absorption costing operating income equals ________.

A) the change in Work-In-Process Inventories times the budgeted fixed overhead rate
B) the change in Finished Goods Inventories times the budgeted fixed overhead rate
C) the change in Raw Materials Inventories times the budgeted variable overhead rate
D) the change in Work-In-Process Inventories times the budgeted variable overhead rate