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7 years ago
Frittata, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year and sold 800 units. If Frittata uses variable costing, ________.
A) its operating income will be the same as under absorption costing
B) its operating income for the period will be lower than under absorption costing
C) its operating income for the period will be higher than under absorption costing
D) its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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7 years ago
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#2
7 years ago
C) its operating income for the period will be higher than under absorption costing
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#3
7 years ago
Will mark this subject solved, thanks
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#4
7 years ago
You are welcome!
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