Which of the following is NOT a potential advantage of variable costing relative to absorption costing?
A)Net income calculated under variable costing is unaffected by changes in production levels.
B)It is easier to understand the impact of fixed and variable costs on the computation of net income when variable costing is used.
C)The use of variable costing is consistent with cost-volume-profit analysis.
D)Net income calculated under variable costing is not closely tied to changes in sales levels.

Question

Quizplus · Accepted Answer

This statement is actually not accurate as net income under variable costing is directly affected by changes in sales levels. The correct answer is D.

Which of the Following Is NOT a Potential Advantage of Variable