Ways to "produce for inventory" that result in increasing operating income include ________.
A) switching production to products that absorb the least amounts of fixed manufacturing costs
B) delaying items that absorb the greatest amount of fixed manufacturing costs
C) deferring maintenance to accelerate production
D) undervaluing ending inventory by not recording certain costs that have been incurred

Question

Quizplus · Accepted Answer

Deferring maintenance to accelerate production can increase operating income by producing more units, thus spreading fixed costs over a larger number of units and reducing the cost per unit.

Ways to "Produce for Inventory" That Result in Increasing Operating