Which of the following is consistent with generally accepted accounting principles?
A)absorption-cost approach
B)variable cost-plus approach
C)variable-cost approach
D)both absorption cost and variable cost-plus approach

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) require the use of absorption-cost approach for product costing, which includes both variable and fixed manufacturing costs. The variable-cost approach only includes the variable manufacturing costs and is not considered to be in compliance with GAAP. The variable cost-plus approach is not a recognized method under GAAP.

Which of the Following Is Consistent with Generally Accepted Accounting