Week 1 Discussion - Over the past year, a company’s inventory

D1

At least 3 paragraphs long with 3 peer-reviewed references.

Over the past year, a company’s inventory has increased significantly. The company uses absorption costing for financial statements, but internally, the company uses variable costing for financial statements. Which set of financial statements will show the highest operating income? What specifically causes the difference between the two sets of financial statements?