When Comparing Variable Costing to Absorption Costing, Which of the Following

Multiple Choice

When comparing variable costing to absorption costing, which of the following would be a potential advantage of using variable costing?

A) Using variable costing is consistent with using the cost-volume-profit analysis.
B) Operating income is affected by the changes in production.
C) Operating income calculated using variable costing is not closely tied to changes in sales levels.
D) All the answers are potential advantages.