Which of the Following Steps Can a Management Take to Reduce

Multiple Choice

Which of the following steps can a management take to reduce the undesirable effects of absorption costing?

A) It can evaluate managers on quarterly basis rather than the usual yearly period thereby mitigating the undesirable effects of absorption costing.
B) It can delegate powers to managers to decide which orders they want to accept so that any order which will lead to inventory build-up can be rejected.
C) It can empower managers to decide the timings of maintenance of plants thereby ensuring that the production is not affected.
D) It can encourage using nonfinancial measures such as units in ending inventory compared to units in sales.