Why Do Companies Use Variable Costing for Internal Financial Statements

Multiple Choice

Why do companies use variable costing for internal financial statements?

A) Production volume variance does not affect variable costing income but it does affect absorption costing income.
B) Variable costing does not create an incentive to produce additional unneeded units to increase net income.
C) A sales-oriented company wants to track the effect of sales on net income.
D) All of the above