You are assigned to a team responsible for reviewing the financial statements with lower-level departmental managers.Some of your team members want to use the absorption costing income statement generally distributed by the accounting department.You believe a variable costing income statement will be more appropriate to use in explaining items to lower-level managers.Your team has requested more information on the variable costing format.
Required:

Write a memo to your team members explaining why you believe the variable costing income statement should be used.

Question

You are assigned to a team responsible for reviewing the financial statements with lower-level departmental managers.Some of your team members want to use the absorption costing income statement generally distributed by the accounting department.You believe a variable costing income statement will be more appropriate to use in explaining items to lower-level managers.Your team has requested more information on the variable costing format.
Required:

Write a memo to your team members explaining why you believe the variable costing income statement should be used.

Quizplus · Accepted Answer

The Answer of You are assigned to a team responsible for reviewing the financial statements with lower-level departmental managers.Some of your team members want to use the absorption costing income statement generally distributed by the accounting department.You believe a variable costing income statement will be more appropriate to use in explaining items to lower-level managers.Your team has requested more information on the variable costing format.
Required:

Write a memo to your team members explaining why you believe the variable costing income statement should be used.

You Are Assigned to a Team Responsible for Reviewing the Financial