Which of the Following Is a Reason for Companies Adopting

Multiple Choice

Which of the following is a reason for companies adopting variable costing for internal reporting purposes?

A) It is cost-effective to use variable costing for both internal and external reporting.
B) It reduces the incentives for undesirable buildup of inventories.
C) It measures the cost of all manufacturing resources, whether variable or fixed, necessary to produce inventory.
D) It assists in accurate pricing decisions in case of long-run pricing.