4. Under absorption costing, accounting profits are reduced when invento-
ries decrease. Fixed manufacturing overhead costs that are deferred in
inventories are released to the income statement whenever inventories
are reduced. Inventories may be reduced for a number of good reasons
including a switch to JIT operations or an anticipated fall in demand
early in the next accounting period.
Group Exercise 7-22
Bạn đang xem 4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH07 VARIBLE COSSTING TOOL FOR MANAGEMENT
