Reference no: EM132529131

Question 1: When comparing the operating profits between absorption costing and variable costing, and beginning finished inventory exceeds ending finished inventory, it may be assumed that:

Select one:

Option a. variable cost per unit is less than fixed cost per unit

Option b. there is an unfavourable production-volume variance

Option c. sales increased during the period

Option d. variable costing operating profit exceeds absorption costing operating profit