Which of the Following Statements Is True

question 110

Multiple Choice

Which of the following statements is true?

• A) Expenses are not usually separated into variable and fixed elements in externally reported income statements.
• B) Even if there is no change in units sold, selling price, or cost structure, a company can increase its absorption costing net operating income from one year to the next just by producing more units.
• C) When finished goods inventory decreases during a period, a manufacturing company's absorption costing net operating income for that period will usually be greater than its variable costing net operating income.
• D) Both A and B above.