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Problem:

Critics have claimed that a widely used accounting system has led to undesirable buildups of inventory levels.

Required:

Question 1: Is variable costing or absorption costing more likely to lead to such buildups? Why?

Question 2: What can be done to counteract undesirable inventory buildups?

Note: Be sure to show how you arrived at your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165548

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