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Which of the Following Is True of Absorption Costing

Question 91

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 and building ending inventory.
D) It enables a manager to increase margins and operating income by producing more and building ending inventory.

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