Which of the Following Is True of Absorption Costing

question 89

Multiple Choice

Which of the following is true of absorption costing?

• A) It enables a manager to decrease margins and operating income by producing more beginning inventory.
• B) It enables a manager to increase margins and operating income by producing more beginning inventory.
• C) It enables a manager to decrease margins and operating income by producing more ending inventory.
• D) It enables a manager to increase margins and operating income by producing more ending inventory.

---

Definitions:

Pregnancy

The period during which a woman carries a developing fetus, usually lasting around 40 weeks from the last menstrual period to childbirth.

Bacterial Infection

An invasion of the body by harmful bacteria that can cause diseases and trigger an immune response.

Urinary Tract

The system in the body responsible for the removal of waste and excess water through urine; it includes the kidneys, ureters, bladder, and urethra.

Nitrite

A chemical compound composed of nitrogen and oxygen, often used as an indicator of bacterial infection or for the preservation of food.