To achieve consistency in reporting, a company must use the same capacity-level concept for internal reporting and control as it uses for external reporting and tax reporting.

Question

Quizplus · Accepted Answer

A company can use different capacity-level concepts for internal reporting and control than it uses for external reporting and tax reporting, as internal reporting is often more focused on operational efficiency and decision-making, while external reporting must comply with legal and regulatory standards.

To Achieve Consistency in Reporting, a Company Must Use the Same