The Difference in Variable Costing Operating Income and Absorption Costing

question 140

Multiple Choice

The difference in variable costing operating income and absorption costing operating income equals ________.

• A) the change in Work-In-Process Inventories times the budgeted fixed overhead rate
• B) the change in Finished Goods Inventories times the budgeted fixed overhead rate
• C) the change in Raw Materials Inventories times the budgeted variable overhead rate
• D) the change in Work-In-Process Inventories times the budgeted variable overhead rate