The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available: The effect on operating income if absorption costing is used rather than variable costing would be a(n)
A)$80,000 decrease
B)$80,000 increase
C)$104,000 increase
D)$104,000 decrease

Question

The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available:  The effect on operating income if absorption costing is used rather than variable costing would be a(n)
A)$80,000 decrease 
B)$80,000 increase 
C)$104,000 increase 
D)$104,000 decrease

Quizplus · Accepted Answer

The Answer of The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available:  The effect on operating income if absorption costing is used rather than variable costing would be a(n)
A)$80,000 decrease 
B)$80,000 increase 
C)$104,000 increase 
D)$104,000 decrease

The Level of Inventory of a Manufactured Product Has Increased