Absorption costing must be used for financial reporting. Some companies also use absorption costing for internal decision
Question:
Absorption costing must be used for financial reporting. Some companies also use absorption costing for internal decision making.
a. Absorption costing can be more effective than variable costing for strategic decision making.
b. One limitation of the method is that it can create an incentive for overproduction.
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Related Book For 
Managerial Accounting Information For Decisions
ISBN: 9780324222432
4th Edition
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill
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