13. When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs deferred in inventory under absorption costing should be deducted from variable costing net operating income to arrive at the absorption costing net operating income.

A. TrueB. False

correct option is B. False

Explanation:

As the above-given statement is false,      

because  In the inventory of under absorption costing that should not be deducted by the variable costing but It should be added in the variable costing net operating income to arrive at the absorption cost, net operating income.  

so that correct option is B. False  

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.