Which of the following is a disadvantage of using the variable costing method to value inventory? a.

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Which of the following is a disadvantage of using the variable costing method to value inventory?

a. Managers are able to determine the amount of revenue needed to cover fixed costs.

b. Because net income follows production, incentives to increase profit by boosting production are eliminated.

c. Variable costing is not allowed under generally accepted accounting principles.

d. Cost-volume-profit relationships are more easily discerned.

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Financial & Managerial Accounting For Undergraduates

ISBN: 9781618533104

2nd Edition

Authors: Jason Wallace, James Nelson, Karen Christensen, Theodore Hobson, Scott L. Matthews

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