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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Related Book For
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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