Which of the following product-costing systems is/are required for tax purposes?
A)Absorption costing.
B)Variable costing.
C)Throughput costing.
D)Either absorption or variable costing.
E)Absorption, variable costing, or throughput costing.

Question

Quizplus · Accepted Answer

Absorption costing is required for tax purposes because it includes all manufacturing costs (fixed and variable) in the cost of a product, which aligns with tax regulations for inventory valuation.

Which of the Following Product-Costing Systems Is/are Required for Tax