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A company that operates on a very thin profit margin would most likely choose to prepare income statements using the costing approach to inventory valuation
A company that operates on a very thin profit margin would most likely choose to prepare income statements using the costing approach to inventory valuation because that method variable; makes it easier to predict future costs when fixed costs are deferred. variable; is more sensitive to changes in sales volumes. absorption; is consistent with cost-volume-profit analysis. absorption; allocates fixed costs to inventory
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