When using ____________ costing, management may be tempted to produce more units than demand when trying to increase operating income.
A)absorption.
B)variable.
C)both absorption and variable.
D)neither absorption or variable.

Question

Quizplus · Accepted Answer

Absorption costing includes fixed manufacturing overhead in product costs, which can incentivize management to produce more units to spread these costs over more units, thus increasing operating income.

When Using ____________ Costing, Management May Be Tempted to Produce