Accountants prefer the variable costing method over absorption costing method for evaluating the performance of a company because select one: a. by using the absorption costing method, income could appear to be higher by producing more inventory. b. by using the absorption costing method, income could appear to be lower by producing more inventory. c. by using the variable costing method, the cost of goods sold will be higher as more units are manufactured and sales remain the same. d. by using the variable costing method, all fixed and variable costs are included in the unit cost of the product manufactured.

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.