Net operating income figures reported under absorption


Over an extended period of time in which the final ending inventories are zero, the accumulated net operating income figures reported under absorption costing will be:

a) greater than those reported under variable costing.

b) less than those reported under variable costing.

c) the same as those reported under variable costing.

d) higher or lower since no generalisation can be made.

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Accounting Basics: Net operating income figures reported under absorption
Reference No:- TGS095281

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