Variable costing is the only acceptable basis for both external reporting and tax reporting.

Name: Variable costing is the only acceptable basis for both external reporting and tax reporting.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Variable costing is not the only acceptable basis for external reporting and tax reporting. Generally accepted accounting principles (GAAP) require absorption costing for external financial reporting, while tax laws may allow for either absorption or variable costing.

Variable Costing Is the Only Acceptable Basis for Both External