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Volplex, Inc. produces paper and office supplies and uses the just-in-time inventory system. ...

Volplex, Inc. produces paper and office supplies and uses the just-in-time inventory system. Currently, the company is using variable costing. Which of the following is true of the effect of costing systems on the financial results of Volplex?
A) Its operating income will be significantly higher if the company uses absorption costing instead of variable costing.
B) Its operating income will be significantly lower if the company uses absorption costing instead of variable costing.
C) Its operating income will be negative if the company uses absorption costing instead of variable costing.
D) Its operating income will vary a little if the company uses absorption costing instead of variable costing.

Textbook

Horngren's Financial & Managerial Accounting, The Financial Chapters

Edition: 5^th

Authors: Miller-Nobles, Mattison, Matsumura

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