When there are no beginning or ending finished goods inventories,________.
A)variable and absorption costing will result in different values for ending finished goods inventories
B)variable and absorption costing will result in the same operating profits
C)variable and absorption costing will result in different sales revenue
D)variable and absorption costing will result in different values for cost of goods sold

Question

Quizplus · Accepted Answer

When there are no beginning or ending finished goods inventories, variable and absorption costing will result in the same operating profit because there is no change in inventory to account for. Therefore, the only difference between variable and absorption costing would be in the cost of goods sold, which would not affect the operating profit.

When There Are No Beginning or Ending Finished Goods Inventories,________