MariaIZweird7983 MariaIZweird7983

07-03-2022
Business

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When inventory increases, which costing method generally results in higher net income?.

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olivgonz0276 olivgonz0276

07-03-2022

Answer: Income is higher under absorption costing by $15,000. This is consistent with a general rule of thumb: Increases in inventory cause income to be higher under absorption costing than under variable costing, and vice versa.

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