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Indicate which of the following managerial policies increases the risk of a death spiral. Please select all that apply Use of absorption costing Use of

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Indicate which of the following managerial policies increases the risk of a death spiral. Please select all that apply Use of absorption costing Use of cost-based pricing Use of expected production volume as an activity base over which to allocate overhead. Use of practical production volume (i.e. capacity costing) as an activity base over which to allocate overhead. Use of multiple cost drivers with strong causal relationship to overhead costs Indicate whether the following statement is true of a job-order cost accounting system: Averaged over many years, a mature business is likely to report about the same income under variable costing as it does under absorption costing. True False

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