According to the rules and conventions of the Financial Accounting Standards Board (FASB), only production costs should be used in calculating product costs for _____.
A)tactical profitability analysis
B)pricing decisions
C)product mix decisions
D)external financial reporting

Question

Quizplus · Accepted Answer

According to FASB, only production costs should be used in calculating product costs for external financial reporting, which includes income statements, balance sheets, and statements of cash flows. Tactical profitability analysis, pricing decisions, and product mix decisions may consider other costs, such as marketing and distribution expenses, in addition to production costs.

According to the Rules and Conventions of the Financial Accounting