Variable costing does not conform to GAAP because it does not match manufacturing costs with revenues.

Name: Variable costing does not conform to GAAP because it does not match manufacturing costs with revenues.
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

Variable costing is not in accordance with GAAP because it only includes variable costs in product costs, excluding fixed manufacturing overhead, which does not align with the matching principle of matching costs with revenues.

Variable Costing Does Not Conform to GAAP Because It Does