ABC Company has a normal two-stage variable job-order costing system. They close over- or under-applied overhead directly into Cost of Sales, and use expected production as their activity base. Assume that their projections for total fixed costs, total activity and variable costs per unit are accurate. For the following change, taken independently and assuming nothing else changes, choose thebestanswer.

Taking on an additional job that remains in inventory at the end of the period will:

Increase adjusted cost of sales

Impossible to predict without additional information

Have no effect on adjusted cost of sales

Reduce adjusted cost of sales