A Disadvantage of Absorption Costing Is

question 84

Multiple Choice

A disadvantage of absorption costing is

• A) that it is not a useful format for decision making.
• B) that it might encourage inventory build up.
• C) both a and b.
• D) none of these.

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Definitions:

International Projects

Ventures or operations undertaken by businesses or organizations that involve cross-border investments and activities.

Market Segmentation

A marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and priorities, and then designing and implementing strategies to target them.

Gilts

British and Irish government securities, including issues of local British authorities and some overseas public-sector offerings.

Government Securities

Financial instruments issued by the government to raise funds from the public, including bonds, notes, and bills, generally considered low-risk investments.