Multiple Choice
Why have many companies switched from absorption costing to variable costing for internal reporting?
Variant question
A) To increase bonuses for managers
B) So the denominator level is more accurate
C) To reduce the undesirable incentive to build up inventories
D) To comply with external reporting requirements
Correct Answer:

Verified
Correct Answer:
Verified
Q8: Activity-based costing has less applicability in a
Q27: When production deviates from the denominator level,
Q107: Answer the following questions using the
Q108: A materials-requisition record is an example of
Q208: The ending balance in the Finished Goods
Q209: Lexington Company produces baseball bats and
Q210: The difference between actual costing and normal
Q214: Answer the following questions using the
Q216: The basic source document for direct manufacturing
Q217: A company would use multiple cost-allocation bases:<br>A)because