Question: Current Attempt in Progress Your answer is incorrect. When absorption costing is used for external reporting, variable costing can still be used for internal reporting
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When absorption costing is used
for external reporting, variable costing can still be used for internal reporting purposes. and production exceeds sales, absorption costinfoports a lower net income than variable costingit facilitates costvolumeprofit analysis.
management may be tempted to overproduce in a given period in order to decrease net income.
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