Variable costing is acceptable for which of the following purposes?
A)GAAP reporting
B)Internal reporting
C)Reporting to the IRS
D)SEC reporting

Question

Quizplus · Accepted Answer

Variable costing may be used for internal reporting purposes as it is helpful in decision-making and assessing the profitability of a particular product or service. However, GAAP reporting, IRS reporting, and SEC reporting typically require absorption costing.

Variable Costing Is Acceptable for Which of the Following Purposes