Operating income using absorption costing will be ________ operating income if using variable costing.
A)$450 higher than
B)$900 higher than
C)$1,350 lower than
D)the same as

Question

Quizplus · Accepted Answer

Absorption costing includes fixed manufacturing overhead in product costs, which can lead to higher operating income compared to variable costing when inventory levels increase.

Operating Income Using Absorption Costing Will Be ________ Operating Income