W Limited is uncertain about whether to apply marginal costing or absorption costing. Which row shows the correct answer?
- Acharges overheads to expenses rather than to products: absorption; gives higher profits when inventory levels are increasing: absorption
- Bcharges overheads to expenses rather than to products: absorption; gives higher profits when inventory levels are increasing: marginal
- Ccharges overheads to expenses rather than to products: marginal; gives higher profits when inventory levels are increasing: absorption
- Dcharges overheads to expenses rather than to products: marginal; gives higher profits when inventory levels are increasing: marginal