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Briefly Explain Why Many Companies Use Absorption Costing for External

question 13

Essay

Briefly explain why many companies use absorption costing for external reporting as well as internal accounting.


Definitions:

Biological Predisposed

An inherent inclination or natural tendency for individuals to exhibit certain behaviors or characteristics due to genetic factors.

Aversive Events

Incidents or stimuli that are unpleasant or noxious, leading to avoidance behavior.

Fixed-interval

Refers to a schedule of reinforcement where a response is rewarded only after a specified amount of time has elapsed.

Fixed-ratio

A method of reinforcement where only after a certain number of responses are completed is a reward provided.

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