The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: Unit manufacturing costs of the period Unit operating expenses of the period Variable Fixed $24.00 $10.00 8.00 3.00 The effect on operating income if variable costing is used rather than absorption costing would be a a. $65,000 decrease Ob. $50,000 decrease Oc. $50,000 increase O d. $65.000 increase

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.