Q2. Once a company has reduced inventories to zero, A. throughput costing income will be higher than variable costing income. B. absorption costing income will be higher than throughput costing income. C. absorption costing, variable costing, and throughput costing income will be equal. D. the company has reached its breakeven point.
Q2. Once a company has reduced inventories to zero, A. throughput costing income will be higher than variable costing income. B. absorption costing income will be higher than throughput costing income. C. absorption costing, variable costing, and throughput costing income will be equal. D. the company has reached its breakeven point.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q2. Once a company has reduced inventories to zero,
A. throughput costing income will be higher than variable costing income.
B. absorption costing income will be higher than throughput costing income.
C. absorption costing, variable costing, and throughput costing income will be equal.
D. the company has reached its breakeven point.
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