Which of the following is not an advantage of variable costing? Many management teams decide to use variable costing for external as well as internal reporting as it is easier to maintain only one costing system. Cost-volume-profit (CVP) analysis can be performed to make important decisions using the contribution margin income statement. Under variable costing, operating income for a period is not affected by changes in inventories, which makes it easier for managerial accountants to make decisions and correctly interpret results. Variable costing facilitates contribution margin and profitability analysis by products, customers, and other business segments.