Which of the following sentences is true of classification of spoilage as normal or abnormal when inventories are present?
A) Classifying spoilage as normal rather than abnormal results in same current operating income.
B) Classifying spoilage as normal rather than abnormal results in an decrease in current operating income.
C) Classifying spoilage as abnormal rather than normal results in an increase in current operating income.
D) Classifying spoilage as normal rather than abnormal results in an increase in current operating income.
Answer: D
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