Sales volume is the only driver of operating income under absorption costing.

Name: Sales volume is the only driver of operating income under absorption costing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

While sales volume does impact operating income under absorption costing, it is not the only driver. Other factors such as variable cost per unit, fixed manufacturing overhead per unit, and changes in inventory levels also impact operating income.

Sales Volume Is the Only Driver of Operating Income Under