If a company sells a product for less than its budgeted unit product cost under absorption costing,then the company will lose money.

Question

Quizplus · Accepted Answer

Under absorption costing, fixed manufacturing costs are spread over all units produced, so selling a product for less than its budgeted unit product cost does not necessarily mean the company will lose money, as it depends on other factors like variable costs and overall sales volume.

If a Company Sells a Product for Less Than Its