Switching production to products that absorb the highest amount of fixed manufacturing costs is also called ________.
A) cost reduction
B) cherry picking
C) producing for sales
D) throughput costing

Question

Quizplus · Accepted Answer

Cherry picking refers to selecting and prioritizing production of products that absorb the highest amount of fixed manufacturing costs, as these products generate the most profit for the company. This strategy is commonly used in cost accounting and production planning. Cost reduction involves identifying and eliminating unnecessary expenses in the production process, producing for sales simply means manufacturing products for sale to customers, and throughput costing is a method of measuring and optimizing production efficiency.

Switching Production to Products That Absorb the Highest Amount of Fixed