What kind of unit cost data is needed for external reporting and managerial decision making?
External Reporting Managerial Decision Making
A)standard costing variable costing
B)variable costing full-absorption costing
C)full-absorption costing variable costing
D)normal costing full-absorption costing

Question

Quizplus · Accepted Answer

For external reporting, full-absorption costing is usually required as it includes all overhead costs and provides a more accurate representation of the cost of goods sold.

For managerial decision making, variable costing is often preferred as it separates fixed and variable costs, making it easier to determine the impact of changes in production levels on profitability.

Therefore, the best choice would be option C, which includes both full-absorption costing for external reporting and variable costing for managerial decision making.

What Kind of Unit Cost Data Is Needed for External