15-1: Which of the following items account for the difference in income between Variable Costing and Absorption Costing when inventory levels are changing? (Check all that apply.)

(A) Fixed manufacturing costs

(B) Fixed non-manufacturing costs

(C) Variable manufacturing costs

(D) Variable non-manufacturing costs

15-5: The Impatients-To-Go Silk Flower Company began operations on January 1, 2004. Which of the following circumstances ensures that the companys net income will be the same under Absorption Costing as under Variable Costing for 2005, its second year of operations?

(I) The company has no inventory on January 1, 2005, and no inventory on December 31, 2005.

(II) The company incurred no fixed manufacturing overhead in 2005, and has no inventory on December 31, 2005.

(III) The company incurred no fixed manufacturing overhead in 2004, and has no inventory on December 31, 2005.

(A) I only

(B) I and II are each sufficient

(C) I and III are each sufficient

(D) I, II and III are each sufficient