Multiple Choice
Why is absorption costing more widely used than variable costing?
A) Variable costing is not allowed for tax purposes, but absorption costing is allowed.
B) Variable costing is not allowed for external reports, but absorption costing is allowed.
C) Absorption costing removes the impact of changing inventory levels from the financial results.
D) A and B
Correct Answer:
Verified
Correct Answer:
Verified
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