Variable costing has an advantage over absorption costing for which of the following purposes?
A)analysis of profitability of products,territories,and other segments of a business
B)determining the CVP relationship among the major factors of selling price,sales mix,and sales volume
C)minimizing the effects of inventory changes on net income
D)all of the above

Question

Quizplus · Accepted Answer

Variable costing is advantageous for analyzing profitability, determining cost-volume-profit relationships, and minimizing the effects of inventory changes on net income, making all the options correct.

Variable Costing Has an Advantage Over Absorption Costing for Which