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Absorption costing can lead managers to mistakenly believe that fixed manufacturing overhead costs will ______ in total as the number of units produced increases.

Respuesta :

Zviko

Answer:

Decrease

Explanation:

Absorption costing includes both variable and fixed manufacturing costs in determining product cost.

As the number of units produced increases, unit fixed costs decrease because there are as much units to absorb the Fixed Costs.

In total however, the Fixed costs remain constant within relevant range.

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