1C1F WHEN COMPARING ABSORPTION COSTING WITH VARIABLE COSTING, THE DIF...

167. CSO: 1C1d LOS: 1C1f

When comparing absorption costing with variable costing, the difference in operating

income can be explained by the difference between the

a. units sold and the units produced, multiplied by the unit sales price.

b. ending inventory in units and the beginning inventory in units, multiplied by the

budgeted fixed manufacturing cost per unit.

c. ending inventory in units and the beginning inventory in units, multiplied by the

unit sales price.

d. units sold and the units produced, multiplied by the budgeted variable

manufacturing cost per unit.