Under the Absorption Costing Method, a Company Can Increase Profits

question 53

True/False

Under the absorption costing method, a company can increase profits by increasing production rather than by increasing sales

---

Definitions:

Superior Vena Cava

A large vein carrying deoxygenated blood from the head, neck, upper limb, and chest back to the heart.

Inferior Vena Cava

The large vein that carries deoxygenated blood from the lower and middle parts of the body into the right atrium of the heart.

Right Ventricle

The chamber of the heart responsible for pumping deoxygenated blood to the lungs via the pulmonary artery.

Mitral Valve

A valve in the heart located between the left atrium and left ventricle that allows blood to flow one way: from the atrium into the ventricle.