If the unit level of inventory increases during an accounting period, then

ACCOUNTING

Multiple Choice

If the unit level of inventory increases during an accounting period, then

a. less operating income will be reported under absorption costing than variable costing.

b. more operating income will be reported under absorption costing than variable costing.

c. operating income will be the same under absorption costing and variable costing.

d. the exact effect on operating income cannot be determined.

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