Which of the following is consistent with generally accepted accounting principles?
A) Absorption-cost approach
B) Contribution approach
C) Variable-cost approach
D) Both absorption-cost and contribution approach

Question

Quizplus · Accepted Answer

The absorption-cost approach is consistent with generally accepted accounting principles (GAAP) because it includes all manufacturing costs in the cost of a product, which is a requirement under GAAP for external reporting.

Which of the Following Is Consistent with Generally Accepted Accounting