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.

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Definitions:

Practicing Manager

An individual actively engaged in managing a team or organization, applying managerial theories and practices to real-world situations.

Human Behavior

The range of actions and mannerisms exhibited by humans in response to their environment, social stimuli, or internal states.

Predict

To declare or indicate in advance, especially on the basis of special knowledge or inference.

Emotional Intelligence

The ability to understand, use, and manage your own emotions in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges and defuse conflict.