Variable costing is acceptable for which of the following purposes?
A)GAAP reporting
B)Internal reporting
C)Reporting to the IRS
D)All of these ans choices are correct

Question

Quizplus · Accepted Answer

Variable costing is primarily used for internal reporting purposes because it focuses on the behavior of costs and helps management make decisions related to pricing, profitability and cost control. It is not acceptable for GAAP reporting, which requires absorption costing, and may not be accepted for reporting to the IRS. Therefore, only option B is the correct answer.

Variable Costing Is Acceptable for Which of the Following Purposes