For which of the following decisions is absorption costing most appropriate?
A)decisions related to using the sales mix to maximize profitability
B)decisions related to controlling short-term costs
C)decisions related to setting sales prices in the long run
D)decisions related to increasing contribution margin

Question

Quizplus · Accepted Answer

Absorption costing is most appropriate for long-term pricing decisions as it considers all costs including fixed costs which need to be covered in the long term.

For Which of the Following Decisions Is Absorption Costing Most