Under Absorption Costing,which of the Following Statements Is Not True

question 134

Multiple Choice

Under absorption costing,which of the following statements is not true?

• A)Over production and inventory buildup can occur because of how managers are evaluated and rewarded.
• B)The fixed costs per unit decline as more units are produced.
• C)Variable inventory costs are treated in the same manner as they are under variable costing.
• D)Fixed inventory costs are treated in the same manner as they are under variable costing.
• E)All manufacturing costs are assigned to products.

---

Definitions:

Redundancy

The duplication of critical components or functions of a system with the intention of increasing reliability of the system, often through the inclusion of backup or fail-safe mechanisms.

Toner Probe

A diagnostic tool set used in the identification of cables and detection of electrical circuits.

Punch-Down Tool

An implement that terminates cable on a patch panel.

Patch Panel

A hardware assembly, typically a flat panel, that organizes cable connections and allows for easy management of network, audio, or video cables.