If a Firm Uses Absorption Costing,which of the Following Actions

question 53

Multiple Choice

If a firm uses absorption costing,which of the following actions taken by management would increase gross profit even if sales do not increase?

• A)Decreasing production and using items from inventory for sales.
• B)Increasing production and building up inventory.
• C)Increasing fixed costs by investing in new production technology.
• D)Increasing variable costs by purchasing higher-quality materials.

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