Variable costing of inventory and absorption costing of inventory is relevant for which of the following types of businesses:
A)Manufacturing firms.
B)Not-for-profit companies.
C)Governmental units.
D)Service firms.
E)All of thesE.
This question is vague as originally worded."Choice" to use variable costing or absorption costing for what purpose - financial statements,decision making? I think I know what you are getting at,and changed it to read as abovE.

Question

Quizplus · Accepted Answer

Variable costing and absorption costing are both commonly used in manufacturing firms to calculate the costs of inventory and to determine pricing decisions. This is because these firms have a significant amount of inventory and need to accurately allocate costs to ensure profitability.

Variable Costing of Inventory and Absorption Costing of Inventory Is