Absorption costing - Characteristics

Q.  Which of the following statements are true?

A) Absorption costing helps in preparation of fixed budget.
B) Absorption costing is dependent on level of level of output.
C) Absorption costing is very helpful in taking managerial decisions.
D) Absorption costing helps to conform with accrual and matching concept.
- Published on 04 Sep 15

a. A and B
b. B and C
c. A and D
d. B and D

ANSWER: B and D

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