The difference between variable net income and absorption net income may be computed by multiplying the change in inventory by the total overhead application rate.

Name: The difference between variable net income and absorption net income may be computed by multiplying the change in inventory by the total overhead application rate.
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Quizplus · Accepted Answer

The difference in income may be computed by multiplying the change in inventory by the fixed manufacturing cost per unit.

The Difference Between Variable Net Income and Absorption Net Income