During Its First Year of Operations, Kima Ltd

question 71

Multiple Choice

During its first year of operations, Kima Ltd. experienced the following: If Kima calculates operating profit under the variable costing method as opposed to the absorption costing method, operating profit will be

• A) $45,000 lower
• B) $270,000 lower
• C) $315,000 higher
• D) $270,000 higher

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