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Which of the following is a valid reason for using variable costing? (2pts) Fixed production cost should be ignored when costing units of inventory since
Which of the following is a valid reason for using variable costing? (2pts) Fixed production cost should be ignored when costing units of inventory since it is not essential to the production process. Absorption costing may motivate managers to overproduce in order to increase profits. Absorption costing recognizes fixed costs as expense regardless of volume of production. Under variable costing managers can increase profitability by increasing the volume of production.
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