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Business, 11.02.2020 03:52 student0724

The Hondasaki Motorcycle Company has a normal two-stage absorption job-order costing system. They close over- or under-applied overhead directly into Cost of Goods Sold, and use expected production as their activity base. Assume that their projections for total fixed costs and variable costs per unit are accurate.

Taking on an additional job that remains in inventory at the end of the period will:
a. Reduce adjusted cost of goods sold
b. Increase adjusted cost of goods sold
c. Have no effect on adjusted cost of goods sold
d. Impossible to predict without additional information

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