The following income statements are produced according to generally accepted accounting principles:
A)Variable costing
B)Absorption costing
C)Throughput costing
D)Standard costing

Question

Quizplus · Accepted Answer

Absorption costing is the only method listed that is in accordance with generally accepted accounting principles. Variable costing, throughput costing, and standard costing are all alternative methods that may be used by companies, but do not conform to GAAP.

The Following Income Statements Are Produced According to Generally Accepted