Which of the Following Formulas Can Often Reconcile the Difference

question 50

Multiple Choice

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

• A)Change in inventory units x Predetermined variable-overhead rate per unit.
• B)Change in inventory units ÷ Predetermined variable-overhead rate per unit.
• C)Change in inventory units x Predetermined fixed-overhead rate per unit.
• D)Change in inventory units ÷ Predetermined fixed-overhead rate per unit.
• E)(Absorption-costing net income - Variable-costing net income) x Fixed-overhead rate per unit.

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