Under full-absorption costing,
A)companies can increase income by increasing the number of units produced
B)all product and period costs are included in cost of goods sold
C)only costs that vary per unit are included in cost of goods sold
D)only direct material costs are included in cost of goods sold

Question

Quizplus · Accepted Answer

Under full-absorption costing, companies can increase income by increasing the number of units produced because fixed manufacturing overhead costs are spread over more units, reducing the cost per unit and potentially increasing income if these units are sold.

Under Full-Absorption Costing