The direct costing procedure is used for financial reporting.

Name: The direct costing procedure is used for financial reporting.
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Direct costing, also known as variable costing, is a management accounting method used for internal decision-making purposes. It is not generally accepted for financial reporting purposes, as it does not conform to Generally Accepted Accounting Principles (GAAP), which require the use of absorption costing.

The Direct Costing Procedure Is Used for Financial Reporting