At the end of Crystal Companys first year of operations, 1, 000 units of inventory remained on hand. Variable and fixed manufacturing cost per unit were P 90 and P 20, respectively. If Crystal uses absorption costing income statement rather than direct costing, the result would be a higher pretax income of

VARIABLE COSTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

At the end of Crystal Company’s first year of operations, 1, 000 units of inventory remained on hand. Variable and fixed manufacturing cost per unit were P 90 and P 20, respectively. If Crystal uses absorption costing income statement rather than direct costing, the result would be a higher pretax income of

A	P 20, 000
B	P 70, 000
C	P 0
D	P 90, 000

Explanation:

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ECONOMICS

COST ACCOUNTING

VARIABLE COSTING