Suppose a firm with non-zero inventory balances is considering whether to classify spoilage as normal or abnormal. Which of the following sentences is true?

A.

Classifying spoilage as abnormal rather than normal results in an increase in current operating income.

B.

Classifying spoilage as normal rather than abnormal results in an increase in current operating income.

C.

Classifying spoilage as normal rather than abnormal results in a decrease in current operating income.

D.

Classifying spoilage as normal rather than abnormal results in same current operating income.