B. If finimelted products inventory boosts, absorption costing outcomes in greater income.

You are watching: Which of the following statements is true regarding absorption costing

C. Variable manufacturing prices are lower under variable costing.

D. Gross margins are the exact same under both costing techniques.


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B. If finimelted goods inventory increases, absorption costing outcomes in higher earnings. The factor is that some of the fixed production overhead incurred in the time of the duration will certainly be brought forward in price finished goods inventory ( which reduces cost of sales) to be collection versus sales revenue in the following period rather of being created off in full versus profit in the period.

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