The variable costing method is required for external financial reporting.

Name: The variable costing method is required for external financial reporting.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

The variable costing method is not required for external financial reporting. However, it can be used for internal management purposes and decision-making. Generally accepted accounting principles (GAAP) require that the absorption costing method be used for external financial reporting.

The Variable Costing Method Is Required for External Financial Reporting