Q 8.82: Juarez runs a recording studio that specializes in producing high-quality demo discs for aspiring young musicians. His business has done very well, with many requests coming in from international singers. In fact, he has done so well that he is now paying sales tax, GST and provincial and federal business taxes. Under these circumstances, it would be advisable for Jaurez to prepare his financial statements using A the accrual costing approach which is a combination of absorption and variable costing and uses information already available in the accounting system. B the absorption costing approach for external reporting purposes, and the variable costing approach for cost-volume-profit decisions. C the absorption costing approach as it would serve both purposes: external reporting and cost-volume-profit decisions. D the variable costing approach as it would serve both purposes: external reporting and cost- volume-profit decisions