Answer the Following Question(s)using the Information Below

question 113

Multiple Choice

Answer the following question(s) using the information below.Heinrich Corporation budgeted fixed manufacturing costs of $6,000 during 2012.Other information for 2012 includes:
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold.
-Which of the following is a weakness particular to the absorption costing method?

• A)A production manager cannot manipulate operating income.
• B)A manager is always encouraged to match the production schedule to estimated demand.
• C)A manager may be encouraged to switch production to difficult to manufacture products.
• D)A downward demand spiral can be created.
• E)A manager may be encouraged to defer maintenance.

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Definitions:

Western Front

A major theater of battle during World War I, stretching across Belgium and France, characterized by trench warfare and significant casualties.

French Officials

Personnel or authorities that govern, administer, or represent France at various levels of organization, from local communities to international relations.

United States Officials

Individuals holding positions of authority or public service in various branches of the U.S. government, including executive, legislative, and judicial roles.

Shell Shock

A term coined during World War I to describe the psychological trauma experienced by soldiers after prolonged exposure to warfare.