If variable costing is in use, one would expect:
A. net operating income to be erratic over the three-year period.
B. net operating income to be the same for each year.
C. the break-even point to be lower in Year 2 than in Year 3.
D. net operating income to be higher in Year 2 than in Year 1.
Answer:B
If variable costing is in use, one would expect:
A. net operating income to be erratic over the three-year period. B. net operating income to be the same for each year. C. the break-even point to be lower in Year 2 than in Year 3. D. net operating income to be higher in Year 2 than in Year 1.