Which of the Following Id NOT an Example of the Drawbacks

question 209

Multiple Choice

Which of the following id NOT an example of the drawbacks of using absorption costing?

• A)Operating profit solely reflects income from the sale of units and excludes the effects of manipulating production schedules
• B)Management has the ability to manipulate operating profit via production schedules
• C)Decreasing maintenance activities and increasing production result in increased operating profit
• D)Manipulation of operating profit may ultimately increase the company's costs incurred over the long run

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Definitions:

Communication Process

The method by which information is transmitted and received between a sender and a receiver, encompassing elements like encoding, medium of transmission, decoding, and feedback.

Feedback Loop

A process in which the outputs of a system are circled back and used as inputs, leading to adjustments and refinement of operations or products.

Word Of Mouth

An informal mode of communication among consumers sharing opinions and experiences about a product or service, often influencing purchasing decisions.

Communication Process

The method through which information is exchanged between senders and receivers, involving encoding, medium selection, decoding, and feedback.