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The absorption-cost approach is used by most companies for all of the following reasons except that... a)absorption cost information is readily provided by a companys
The absorption-cost approach is used by most companies for all of the following reasons except that...
a)absorption cost information is readily provided by a companys cost accounting system.
b)basing prices on only variable costs could encourage managers to set too low a price to boost sales.
c)this approach is more consistent with cost-volume-profit analysis.
d)absorption cost provides the most defensible bases for justifying prices to interested parties
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