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Author Question: Which of the following is a reason for companies adopting variable costing for internal reporting purposes? (Read 86 times)

Yolanda

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Which of the following is a reason for companies adopting variable costing for internal reporting purposes?
◦ It is cost-effective to use variable costing for both internal and external reporting.
◦ It reduces the incentives for undesirable buildup of inventories.
◦ It measures the cost of all manufacturing resources, whether variable or fixed, necessary to produce inventory.
◦ It assists in accurate pricing decisions in case of long-run pricing.


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Marked as best answer by Yolanda on Mar 6, 2021

FergA

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Yolanda

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Reply 2 on: Mar 6, 2021
Gracias!


chjcharjto14

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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