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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:
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. 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?


Definitions:

Operational Sex Ratios

The ratio of sexually competing males to fertilizable females at any given time within a population, influencing mating behavior.

Male-Biased

Refers to circumstances or patterns that disproportionately favor males, such as in survival, dispersal, or resources allocation.

Bateman's Principle

A concept in sexual selection that suggests males have greater variance in reproductive success than females due to their investment in mating.

Reproductive Variance

Reproductive variance refers to the variation in reproductive success among individuals within a population.

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