6-8 If fixed manufacturing overhead costs are released from inventory under absorption costing, what does this tell you about the level of production in relation to the level of sales?

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Related questions

6-4 What arguments in favor of treating fixed manufacturingoverhead costs as product costs?

6-6 If the units produced and unit sales are equal, which methodwould you expet to show the higer operating income, variablecosting or absorption costing? Why?

6-7 If the units produced exceed unit sales, which method wouldyou expect to show the higher net operating income, variablecosting or absorptioncosting? Why?

6-8 If fixed manufacturing overhead costs are relaesed frominventory under absorption costing, what does this tell you aboutthe level of production in relation to the level of sales?

6-9 Under absorption costing, how is it possible to increase netoperating income without increasing sales?

ivorywombat550

the main difference between Absorption costing and Variable costing is the treatment of fixed manufacturing costs, if production exceeds sales with a corresponding increase in ending inventory, what will be the net effect under absorption costing?