Apples and Googles ending inventory amounts (in $ millions) are shown below:

	Apple								Google
	2017				2016				2017				2016
Ending inventory	$	4,855			$	2,132			$	749			$	268

Required: 1. Assume Apple uses variable costing for some of its internal reports. For 2017, would net income based on variable costing be higher, lower, or no different from net income based on absorption costing? 2. Assume Google uses variable costing for some of its internal reports. For 2017, would net income based on variable costing be higher, lower, or no different from net income based on absorption costing? 3. Assume both companies are considering implementing just-in-time (JIT) inventory systems. After implementing JIT systems, would differences in income between absorption costing and variable costing be more likely to increase or to decrease?

Required 1 Required 2 Required 3 Assume Apple uses variable costing for some of its internal reports. For 2017, would net income based on variable costing be higher, lower, or no different from net income based on absorption costing? Net income under variable costing Required 1 Required 2 Required 3 Assume Google uses variable costing for some of its internal reports. For 2017, would net income based on variable costing be higher, lower, or no different from net income based on absorption costing? Net income under variable costing