You are the vice president of operations for a small manufacturing company
that uses the absorptive method of accounting for fixed manufacturing overhead
and you are approaching the end of the year. The accounting manager just visited
some of your supervisors and said that the profitability of the company can
appear better if more products were produced even if they are not all sold
right away. Many of the supervisors do not understand how this makes sense and
asked you to explain it. You decide to meet with all the production supervisors
to explain this.Explain how the profitability of the company can be made to look better if
they were to produce more products even if they are not all sold right
away.In your own words please post a response to the Discussion Board and
comment on other postings. You will be graded on the quality of your
postings.The following grading criteria will be used:Grading Guidelines100%Explain how the profitability of the company can be made to look better if
they were to produce more products even if they are not all sold right
away.