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A- greater than variable costing net income B- equal to variable costing net income C- lower than variable costing net income D- there are not relation between two methods
Option A- greater than variable costing net income..................
The ending inventory figures under the variable costing and absorption costing methods are different. Under variable costing, only the variable manufacturing costs are included in inventory. Under absorption costing, both variable and fixed manufacturing costs are included in inventory.
Answer option A.>>>>>>>greater than variable costing net income
Answer A is the right answer . It will be greater .
(A) is the Correct Ans.
Greater than net income under variable costing.
Absorption costing could result in an increase in net income if a company increases its production and its inventory. This occurs because fixed manufacturing overhead is allocated to more production units—some of which will be reported as inventory
A- greater than variable costing net income
Production units and sales units are not any relation between two methods of calculating net income.
A-
Absorption costing income higher than Variable Costing income
OPTION A
This is because some of the fixed production over heads that had been absorbed in the inventory will be carried forward as ending inventory and reported in the balance sheet as a current asset. Hence the cost of sales will have less of some fixed production over head costs and a lower reported profit for the period end
Answer is A, it will be greater
the correct answer is (A) ... greater than
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