Which of the Following Methods Is Not Used to Reduce

question 38

Multiple Choice

Which of the following methods is not used to reduce the undesirable affects of absorption costing?

• A)Focus on careful planning and budgeting of inventory amounts.
• B)Incorporate carrying charges for inventory in the internal accounting system.
• C)Place greater weight on reporting performance over longer periods.
• D)Include only financial variables in the measures used to evaluate performance.
• E)Use alternative methods of inventory costing for internal purposes that does not create incentives for managers to produce for inventory.

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