Based on the content covered in Week 2 and Chapters 18 and 19 of the Wild, J., & Shaw, K. (2022) text, students learned about cost behavior, cost-volume-profit analysis, and variable costing. Students should address the following:

1. Describe how use of absorption costing in determining income can lead to overproduction and a buildup of inventory. Explain how variable costing can avoid this same problem