13. When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs deferred in inventory under absorption costing should be deducted from variable costing net operating income to arrive at the absorption costing net operating income.

A. TrueB. False

Question

Business

Peyton Boyd

24 December, 06:18

13. When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs deferred in inventory under absorption costing should be deducted from variable costing net operating income to arrive at the absorption costing net operating income.

A. TrueB. False

+1

Answers (1)

Know the Answer?

Callie Bonilla · Answer 1

correct option is B. False

Explanation:

As the above-given statement is false,

because In the inventory of under absorption costing that should not be deducted by the variable costing but It should be added in the variable costing net operating income to arrive at the absorption cost, net operating income.

so that correct option is B. False

13. When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs deferred in inventory under absorption costing should be deducted from variable costing net operating income to arrive at the absorption costing net operating income.A. TrueB. False