A manager can increase income under absorption costing by increasing
A) variable costs.
B) production.
C) fixed costs.
D) leased assets.

Question

Quizplus · Accepted Answer

Under absorption costing, fixed overhead costs are allocated to units of production. Thus, increasing production volume will lead to a higher absorption of fixed overhead costs and a higher reported income. A, C, and D would not necessarily increase income under absorption costing.

A Manager Can Increase Income Under Absorption Costing by Increasing