Absorption costing is more appropriate than variable costing for making plant production capacity decisions.

Name: Absorption costing is more appropriate than variable costing for making plant production capacity decisions.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Absorption costing takes into account fixed manufacturing overhead costs, which are a significant factor in determining the cost of producing additional units. Therefore, it is more appropriate than variable costing for making plant production capacity decisions.

Absorption Costing Is More Appropriate Than Variable Costing for Making