By increasing ________, a manager can increase operating income under absorption costing.
A)variable costs
B)fixed costs
C)production
D)leased assets

Question

Quizplus · Accepted Answer

Increasing production under absorption costing increases operating income because it allocates a portion of fixed manufacturing overhead to each unit produced, thus spreading the fixed costs over more units and decreasing the cost per unit. When these additional units are sold, the revenue from the sales increases operating income.

By Increasing ________, a Manager Can Increase Operating Income Under