Decision-making problems that could occur when using absorption costing include inappropriate decisions, and decisions made to products that are, in fact, profitable.

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07-03-2022
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Decision-making problems that could occur when using absorption costing include inappropriate decisions, and decisions made to products that are, in fact, profitable.

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Anthougoidn Anthougoidn · Answer 1 · 2022-03-15T08:42:08-04:00

Decision-making problems that could occur when using absorption costing include inappropriate __pricing____ decisions, and decisions made to ___drop___ products that are, in fact, profitable.

What is absorption costing?

Absorption costing is the costing method that includes both direct and indirect costs in the costs of a product.

It is the opposite of variable or marginal costing, which takes into account only the direct costs in determining the product cost.

Thus, the decision-making problems with absorption costing include pricing decisions and decisions involving whether to drop profitable products.

Learn more about absorption costing at https://brainly.com/question/26276034

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What is absorption costing?

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