Which of the Following Methods Is Not Used to Reduce

Multiple Choice

Which of the following methods is not used to reduce the undesirable affects of absorption costing?

A) Focus on careful planning and budgeting of inventory amounts.
B) Incorporate carrying charges for inventory in the internal accounting system.
C) Place greater weight on reporting performance over longer periods.
D) Include only financial variables in the measures used to evaluate performance.
E) Use alternative methods of inventory costing for internal purposes that does not create incentives for managers to produce for inventory.