Throughput costing can be used for I Internal reporting
II External reporting
III Income tax reporting
A) I only
B) II only
C) III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Throughput costing is primarily used for internal reporting purposes to assess the efficiency of production process and identify areas for improvement. While it may have some relevance for external reporting, it is not a generally accepted accounting principle and may not be suitable for income tax reporting. Therefore, option B and C are not correct choices.

Throughput Costing Can Be Used for I Internal Reporting