Generally Accepted Accounting Principles require that unitised fixed manufacturing costs be used for:
A)pricing decisions.
B)external reporting.
C)costing decisions.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Generally Accepted Accounting Principles (GAAP) require that unitized fixed manufacturing costs be included in inventory costs and cost of goods sold for external reporting purposes. This is to ensure that financial statements reflect the actual cost of producing inventory, providing a more accurate picture of a company's financial health to external users.

Generally Accepted Accounting Principles Require That Unitised Fixed Manufacturing Costs