Question
If absorption costing is the costing method acceptable for financial reporting under GAAP, why would management prefer another costing method, such as variable costing? Respond
If absorption costing is the costing method acceptable for financial reporting under GAAP, why would management prefer another costing method, such as variable costing?
Respond to the following:
- Discuss one advantage of variable costing.
- Discuss one disadvantage of variable costing.
- Would it be easier to use absorption costing? Why or why not?
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Management Accounting
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
7th Edition
978-1760421144, 1760421146
