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Which of the following statements is true? 1.Under the absorption costing method, a company can increase profits simply by increasing the number of units

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Which of the following statements is true? 1.Under the absorption costing method, a company can increase profits simply by increasing the number of units produced. 2. Under absorption costing, a portion of fixed manufacturing overhead cost is released from inventory when production volume exceeds sales volume. 2.5) 1) Only statement II is true. 2) Only statement I is true. 3) Both statements are true. 4) Neither statement is true.

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