Which of the Following Is True of Absorption Costing

question 91

Multiple Choice

Which of the following is true of absorption costing?

• A) It enables a manager to decrease margins and operating income by producing more beginning inventory.
• B) It enables a manager to increase margins and operating income by producing more beginning inventory.
• C) It enables a manager to decrease margins and operating income by producing more and building ending inventory.
• D) It enables a manager to increase margins and operating income by producing more and building ending inventory.