Q 8.71: The purchasing manager and the operations manager of Bobble Company were discussing the budget for the last two months of the year. The operations manager was pessimistic about receiving a bonus because of lagging sales. The purchasing manager suggested increasing production levels for the last two months, thereby deferring fixed manufacturing costs until the next year. However, this suggestion was rejected by the operations manager because A the company used variable costing which only defers fixed selling and administrative costs. B the company used absorption costing which treats all fixed manufacturing costs as period costs. the company used variable costing so net income would not be affected by production levels. D the company used absorption costing so net income would not be affected by production levels