Which of the following is not one of the reasons why absorption costing might also be used for internal reporting?
A) It is more useful for managerial decision making than variable costing
B) It is cost effective and less confusing for managers to use one common method for both internal and external reporting
C) It can help prevent managers from making decisions that make their performance look good to the detriment of income reported to shareholders
D) For long-term decision making both variable and fixed costs must be considered for inventory related decisions

Question

Quizplus · Accepted Answer

Absorption costing is not necessarily more useful for managerial decision making than variable costing, as variable costing provides clearer insights into the impact of fixed and variable costs on profitability.

Which of the Following Is Not One of the Reasons