​Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year and sold 800 units. If Feldspar uses variable​ costing, ________.   A. its operating income will be the same as under absorption costing   B. its operating income for the period will be lower than under absorption costing   C. its operating income for the period will be higher than under absorption costing   D. its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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​Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year and sold 800 units. If Feldspar uses variable​ costing, ________.
 
A.
its operating income will be the same as under absorption costing
 
B.
its operating income for the period will be lower than under absorption costing
 
C.
its operating income for the period will be higher than under absorption costing
 
D.
its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing
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