Under generally accepted accounting principles, absorption costing is used for
A) Yes/Yes
B) No/No
C) No/Yes
D) Yes/No

Question

Under generally accepted accounting principles, absorption costing is used for 
A) Yes/Yes 
B) No/No 
C) No/Yes 
D) Yes/No

Quizplus · Accepted Answer

Generally accepted accounting principles require that absorption costing be used for external financial reporting purposes. It is used to allocate all manufacturing costs to the products manufactured, including direct materials, direct labor, and both variable and fixed overhead costs.

Under Generally Accepted Accounting Principles, Absorption Costing Is Used for