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Business, 05.12.2019 23:31 amylumey2005

Absorption costing of inventories, as required by us gaap, has been criticized for encouraging managers to increase year-end inventories in order to boost reported profits. which of the following techniques is the most effective at resolving this problem?

senior management control of inventory levels

adoption of just-in-time (jit) production system

reward managers based upon the residual income approach

use variable costing to determine income for bonus purposes

none of the above

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