A Manager Can Increase Income Under Absorption Costing by

question 53

Multiple Choice

A manager can increase income under absorption costing by

• A)increasing variable costs.
• B)increasing production.
• C)increasing fixed costs.
• D)increasing leased assets.

---

Definitions:

Forming Department

A section within a manufacturing process where raw materials are shaped or formed into parts before being assembled into final products.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and factory supervisor salaries, not directly tied to the production of goods.

Customizing Department

A specialized department within a company focused on altering products to meet specific customer requirements or preferences.

Customizing Department

A segment within a manufacturing or production process focused on tailoring products to meet specific customer requirements or specifications.