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Fleet, Inc., manufactured 700 units of Product A, a new product, during the year. Product As variable and fixed manufacturin

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Answer #1
Under Variable costing, fixed manufacturing cost is not included in inventory cost. It is treated as a period cost.
Inventory under absorption costing 800 =100*(6+2)
Less: Inventory under variable costing 600 =100*6
Change in Inventory 200 decrease
Option B $200 decrease is correct
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