Because absorption costing emphasizes costs by behavior, it works well with cost-volume-profit analysis.

Name: Because absorption costing emphasizes costs by behavior, it works well with cost-volume-profit analysis.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Absorption costing does not emphasize costs by behavior; it includes both fixed and variable costs in product costs, making it less suitable for cost-volume-profit analysis, which relies on distinguishing between fixed and variable costs.

Because Absorption Costing Emphasizes Costs by Behavior, It Works Well