Accountants prefer the variable costing method over, Ask an Expert

Accounting

Accountants prefer the variable costing method over absorption costing method for evaluating the performance of a company because

A) by using the absorption method, more sales will be generated.

B) by using the absorption costing method, income could appear to be higher by producing more inventory.

C) by using the variable costing method, the cost of goods sold will be higher as more units are manufactured and sales remain the same.

D) by using the variable costing method, all fixed and variable costs are included in the unit cost of the product manufactured.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9441614

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