Question: What will be the difference in net earnings computed using direct costing as opposed to absorption costing if the ending inventory increases with respect to

What will be the difference in net earnings computed using direct costing as opposed to absorption costing if the ending inventory increases with respect to the beginning inventory in terms of units? nj5 There will be no difference in net earnings.

Net earnings computed using direct costing will be higher.

The difference in net earnings cannot be determined from the information given.

Net earnings computed using direct costing will be lower.

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