Which of the Following Formulas Can Often Reconcile the Difference

question 26

Multiple Choice

Which of the following formulas can often reconcile the difference between absorption- and variable-costing income?

• A) Change in inventory units * predetermined variable-overhead rate per unit.
• B) Change in inventory units / predetermined variable-overhead rate per unit.
• C) Change in inventory units* predetermined fixed-overhead rate per unit.
• D) Change in inventory units / predetermined fixed-overhead rate per unit.
• E) (Absorption-costing income - variable-costing income) * fixed-overhead rate per unit.