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The Level of Inventory of a Manufactured Product Has Increased

Question 21

Multiple Choice

The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available: The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available: What would be the effect on income from operations if absorption costing is used rather than variable costing? A) $42,000 decrease B) $42,000 increase C) $52,500 increase D) $52,500 decrease What would be the effect on income from operations if absorption costing is used rather than variable costing?


A) $42,000 decrease
B) $42,000 increase
C) $52,500 increase
D) $52,500 decrease

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