Vnich statement shows the higher operating income? Why? Absorption costing operating income is defers $...

50.1K

Verified Solution

Question

Accounting

Vnich statement shows the higher operating income? Why?
Absorption costing operating income is
defers $
variable costing operating income. This is because absorption costing
of fixed manufacturing overhead as an asset in ending inventory. In contrast, variable costing expenses
the fixed manufacturing overhead during the year.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students