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| When comparing absorption costing to variable costing, which of the following statements is not true? A. A manager who is evaluated based on variable costing operating profit would be tempted to increase production at the end of a period in order to get a more favorable review. B. When sales volume is more than production volume, variable costing will result in higher operating profit. C. Absorption costing enables managers to increase operating profits in the short run by increasing inventories. D. Under absorption costing, operating profit is a function of both sales volume and production volume. |