Under variable costing a. Net income will tend to vary inversely with production changes b. Net income will always be higher than under absorption costing c. Inventory costs will always be lower than under absorption costing d. Net income will tend to move upward and downward in response to changes in levels of production
Under variable costing a. Net income will tend to vary inversely with production changes b. Net income will always be higher than under absorption costing c. Inventory costs will always be lower than under absorption costing d. Net income will tend to move upward and downward in response to changes in levels of production
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 20MC: Product costs under variable costing are typically: A. higher than under absorption costing B. lower...
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Under variable costing
a. Net income will tend to vary inversely with production changes
b. Net income will always be higher than under absorption costing
c. Inventory costs will always be lower than under absorption costing
d. Net income will tend to move upward and downward in response to changes in levels of production
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