B. If finished goods inventory increases, absorption costing outcomes in greater income.

You are watching: Which of the following statements is true regarding absorption costing

C. Change manufacturing expenses are reduced under variable costing.

D. Gross margins space the exact same under both costing methods.



B. If finished products inventory increases, absorb costing results in greater income. The factor is that several of the fixed production overhead incurred during the period will be lugged forward in price finished products inventory ( i beg your pardon reduces cost of sales) to be collection against sales revenue in the following duration instead the being created off in full versus profit in the period.

See more: Accounting For Decision Making And Control 7Th Edition, Accounting For Decision Making And Control

About 2175forals.com.com

2175forals.com.com is the leading project site in the center East and North Africa, connecting task seekers through employers looking to hire. Every day, thousands of new job vacancies are provided on the award-winning communication from the region"s peak employers.