Which of the following is not an argument in favor of throughput costing?
A) Managers cannot hide committed costs or past resource spending by increasing production
B) Only increases in sales will increase profits
C) Increases in sales and production will increase profits
D) Base production decisions should be based on resource supply and use only

Question

Quizplus · Accepted Answer

Throughput costing emphasizes that only increases in sales (not production) will increase profits, making option C incorrect as it suggests both sales and production increases are needed for profit increases.

Which of the Following Is Not an Argument in Favor