A manager can increase income under absorption costing by
A)increasing variable costs.
B)increasing production.
C)increasing fixed costs.
D)increasing leased assets.

Question

Quizplus · Accepted Answer

Under absorption costing, increasing production will increase the number of units that absorb fixed costs, leading to a higher level of income. Increasing variable costs or leased assets would increase the cost of production, potentially decreasing income. Increasing fixed costs will not necessarily increase income under absorption costing, as those costs will be absorbed regardless of the level of production.

A Manager Can Increase Income Under Absorption Costing by