Ways to "produce for inventory" that result in increasing operating income include ________.
A) switching production to products that absorb the least amounts of fixed manufacturing costs
B) delaying items that absorb the greatest amount of fixed manufacturing costs
C) switching production to products that absorb the most amounts of fixed manufacturing costs
D) undervaluing ending inventory by not recording certain costs that have been incurred

Question

Quizplus · Accepted Answer

Switching production to products that absorb the most amounts of fixed manufacturing costs can increase operating income under absorption costing because more fixed costs are allocated to inventory, reducing the costs expensed during the period.

Ways to "Produce for Inventory" That Result in Increasing Operating