Business
Business, 27.04.2021 15:00, alex7881

Tim Smith is​ concerned: He notes that despite an increase in sales over 2019​, 2020 operating income has actually declined under absorption costing. Explain how this occurred. Under absorption​ costing, operating income is a function of production. During 2020​, Alderman experienced a large decrease in inventory levels as a result of decreased production. The end result was that much of 2020's beginning inventory passed through cost of goods sold in 2020.

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Tim Smith is​ concerned: He notes that despite an increase in sales over 2019​, 2020 operating incom...

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