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It Is Misleading to Use the Absorption Costing Income Statement

Question 42

Multiple Choice

It is misleading to use the absorption costing income statement to predict the effect of changes in sales volume because ________.


A) variable production costs per unit do not change with small changes in sales volume
B) total fixed production costs do not change with small changes in sales volume
C) fixed production costs per unit do not change with small changes in sales volume
D) total variable production costs do not change with small changes in sales volume

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