Which format does the CICA Handbook advocate for reporting income?
A) Direct costing
B) Variable costing
C) Indirect costing
D) Full costing

Question

Quizplus · Accepted Answer

The CICA Handbook advocates for reporting income using full costing, which includes all costs both direct and indirect, to provide a more accurate representation of the true cost of producing the goods or services sold. This method is often preferred for financial reporting purposes as it gives a more complete picture of the financial performance of a company.

Which Format Does the CICA Handbook Advocate for Reporting Income