The ________ method allows managers to increase operating income through production by producing more products than needed.
A) absorption costing
B) variable costing
C) direct costing
D) marginal costing

Question

Quizplus · Accepted Answer

Absorption costing includes both fixed and variable manufacturing costs in the cost of a product, which means that producing more units can spread the fixed costs over more units, potentially increasing operating income as more products are produced and sold. This method encourages production of additional units to absorb fixed costs.

The ________ Method Allows Managers to Increase Operating Income Through