Use of absorption costing allows a company to increase its profits by increasing the level of production of its products.

Name: Use of absorption costing allows a company to increase its profits by increasing the level of production of its products.
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Question

Quizplus · Accepted Answer

Absorption costing allocates the fixed overhead costs to products, so as production levels increase, more fixed costs are absorbed by each unit, resulting in lower per-unit fixed costs and potentially higher profits.

Use of Absorption Costing Allows a Company to Increase Its