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.