First: When the number of units in inventories decrease between the beginning and end of the period, absorption costing net operating income will typically be greater than variable costing net operating income. Second: When viewed over the long term, accumulated net operating income will be the same for variable and absorption costing if there are no ending inventories at the end of the term. * a. Both statements are true b. Only the first statement is true c. Only the second statement is true d. Both statements are false

First: When the number of units in inventories decrease between the beginning and end of the period, absorption costing net operating income will typically be greater than variable costing net operating income. Second: When viewed over the long term, accumulated net operating income will be the same for variable and absorption costing if there are no ending inventories at the end of the term. * a. Both statements are true b. Only the first statement is true c. Only the second statement is true d. Both statements are false

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

a. Both statements are true

b. Only the first statement is true

c. Only the second statement is true

d. Both statements are false

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