Although variable costing is NOT permitted for income tax purposes in Canada,it is widely accepted for external financial reports.

Question

Quizplus · Accepted Answer

Variable costing is not accepted for external financial reporting under Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), which are the standards used in Canada for external financial reports. Absorption costing is required for external reporting purposes.

Although Variable Costing Is NOT Permitted for Income Tax Purposes