The main difference between variable costing and absorption costing is the treatment of nonmanufacturing costs. the accounting for variable manufacturing costs. the accounting for fixed manufacturing costs. their value for decision makers. The following data apply to questions 2 and 3. Alvin Inc. planned and actually manufactured 200.000 units of its single product in 2008, its first year of operations. Variable manufacturing costs were $30 per unit of product. Planned and actual fixed manufacturing costs were $600,000, and marketing and administrative costs totaled $400,000 in 2004 Alvin sold 120,000 units of product in 2008 at a selling price of $40 per unit. [CMA Adapted] Alvin's 2008 operating income using variable costing is $800,000. $600,000. $440,000. $200,000. [CMA Adapted] Alvin's 2008 operating income using absorption costing is $840,000. S800.000. $440,000. $200,000. [CPA Adapted] Operating income using variable costing as compared to absorption costing would be higher when the quantity of beginning inventory equals the quantity of ending inventory. when the quantity of beginning inventory is more than the quantity of ending inventory. when the quantity of beginning inventory is less than the quantity of ending inventory. under no circumstances. Absorption costing enables managers to increase operating income in the short run by changing production schedules. Which statement is true regarding such action? The reason for increased operating income is the deferral of fixed manufacturing overhead contained in unsold inventory. A desirable effect of these changes in production is "cherry picking" the production line. This is done through decreases in the production schedule as customer demand for product falls. None of the above statements are true regarding the manager's action to increase operating income through changes in the production schedule. The proponents of throughput costing maintain that variable costing undervalues inventories. maintain that it provides more incentive to produce for inventory than do either variable or absorption costing. argue that only direct materials and direct labor are "truly variable" and all indirect manufacturing costs be written off in the period in which they are incurred