Variable costing has the following advantages:
A) CVP requires the use of information provided by variable costing.
B) Changes in production and inventory levels do not impact the calculation of profits.
C) Under variable costing,cost behaviour is emphasised and fixed costs are separated from variable costs on the income statement.
D) All of these are advantages of variable costing.

Question

Quizplus · Accepted Answer

All of the options are advantages of variable costing. CVP analysis requires variable costing information, changes in production and inventory do not affect profits calculated under variable costing, and variable costing separates fixed and variable costs on the income statement, emphasizing cost behavior.

Variable Costing Has the Following Advantages