Author Question: At the end of the accounting period, Armstrong Corporation reports operating income of $30,000. ... (Read 45 times)

Evvie72 · **on:** Mar 6, 2021

Question 1

________ are subtracted from sales to calculate gross margin.
◦ Variable and fixed manufacturing costs
◦ Fixed administrative costs
◦ Variable administrative costs
◦ Fixed selling costs

Question 2

At the end of the accounting period, Armstrong Corporation reports operating income of $30,000. Which of the following statements is true, if Armstrong's inventory levels decrease during the accounting period?
◦ Variable costing will report less operating income than absorption costing.
◦ Absorption costing will report less operating income than variable costing.
◦ Variable costing and absorption costing will report the same operating income since the cost of goods sold is the same.
◦ Variable costing and absorption costing will report the same operating income since the total costs are the same.

l.stuut · **Reply #1 on:** Mar 6, 2021

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