Absorption costing is required for all of the following except:
A)generally accepted accounting principles
B)determining a competitive selling price
C)external reporting to shareholders
D)income tax reporting

Question

Quizplus · Accepted Answer

Absorption costing is not required for determining a competitive selling price. Other costing methods, such as variable costing, may be more appropriate for this purpose. However, absorption costing is required for generally accepted accounting principles, external reporting to shareholders, and income tax reporting.

Absorption Costing Is Required for All of the Following Except