In General, If Inventory Increases During an Accounting Period, ________

question 10

Multiple Choice

In general, if inventory increases during an accounting period, ________.

• A) variable costing will report less operating income than absorption costing
• B) absorption costing will report less operating income than variable costing
• C) variable costing and absorption costing will report the same operating income
• D) both variable costing and absorption costing will show losses