The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available:   Variable Fixed Unit manufacturing costs of the period $24.00  $10.00  Unit operating expenses of the period 8.00  3.00  The effect on operating income if variable costing is used rather than absorption costing would be a a.$50,000 increase b.$50,000 decrease c.$65,000 decrease d.$65,000 increase

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Q: absorption costing

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.