Why is variable costing used for internal reports?
A) It can also be used for external reports.
B) It is readily available through most computer systems.
C) It removes the impact of changing inventory levels from the financial results.
D) B and C

Question

Quizplus · Accepted Answer

Variable costing is used for internal reports because it removes the impact of changing inventory levels from the financial results, making it easier for management to assess the company's operational performance. Additionally, it is often readily available through most computer systems, making it convenient for internal use.

Why Is Variable Costing Used for Internal Reports