Which of the following statements is true of absorption costing?
A) Absorption costing allocates fixed manufacturing overhead to actual units produced during the period.
B) Absorption costing carries over nonmanufacturing costs to the future periods.
C) Absorption costing shows the same level of profit as variable costing irrespective of the level of inventories.
D) Absorption costing allocates total manufacturing cost using the budgeted level of production for a particular year.
Correct Answer:
Verified
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