Question
Which of the following is not a disadvantage of using variable costing as opposed to absorption costing? Select one: A. Variable accounting records do not
Which of the following is not a disadvantage of using variable costing as opposed to absorption costing?
Select one:
A. Variable accounting records do not conform to GAAP, so two sets of records must be maintained if the company is required to file their statements publicly.
B. Owners' Equity tends to be understated.
C. Accounting records are more costly to maintain.
D. Only variable costs are assigned to inventory, making poor management decisions (such as dropping a profitable product line) more likely to occur.
E. None of the above are disadvantages.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started