A reason why absorption costing income statements are sometimes difficult to interpret is that:

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Tramp

Business

9 February, 21:01

A reason why absorption costing income statements are sometimes difficult to interpret is that:

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Jacquelyn Byrd · Answer 1

In absorption costing all of the manufacturing costs are absorbed by the units produced.

A reason why absorption costing income statements are sometimes difficult to interpret is that they shift portions of fixed manufacturing overhead from period to period according to hanging levels of inventories