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When absorption costing is used a.management may be tempted to overproduce in a given period in order to decrease net income. b.for external reporting, variable

When absorption costing is used

a.management may be tempted to overproduce in a given period in order to decrease net income.

b.for external reporting, variable costing can still be used for internal reporting purposes.

c.it facilitates cost-volume-profit analysis.

d.and production exceeds sales, absorption costing reports a lower net income than variable costing.

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