At the end of the accounting period, Company X reports operating income of $30000.
Which of the following statements is TRUE, if Company X's inventory levels decrease during the accounting period?

Question

At the end of the accounting period, Company X reports operating income of $30000. 
 Which of the following statements is TRUE, if Company X's inventory levels decrease during the accounting period?

Answer

Variable costing and absorption costing will report the same operating income since the cost of goods sold is the same.

Answer

Absorption costing will report less operating income than variable costing.

Answer

Variable costing and absorption costing will report the same operating income since the total costs are the same.

Answer

None of the others

Answer

Variable costing will report less operating income than absorption costing.

Crowdly

At the end of the accounting period, Company X reports operating income of $3000...

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