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Which one of the following is true about absorption cost and variable cost methods ??

A- overhead cost are treat in the same manner in both methods 

B- if finished goods inventory  increase absorption costing will be higher in income 

C - variable manufacture cost are lower under variable costing 

D - gross margin are the same under two same methods

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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/10
Shri Bhagwan Sharma
by Shri Bhagwan Sharma , Asst. Accounts Manager , PROMETAL METAL IND. FACTORY LLC

C - variable manufacture cost are lower under variable costing

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