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Which of the following statements is true?

  1. Absorption costing treats all fixed costs as product costs.
  2. Variable costing is more compatible with cost-volume-profit analysis than is absorption costing.


▸ Only statement I is true.

Only statement II is true.



▸ Both statements are true.

▸ Neither statement is true.
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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