Multiple Choice
Accountants prefer the variable costing method over the absorption costing method for evaluating the performance of a company because
A) by using the absorption costing method, income could appear to be higher by producing more inventory.
B) by using the absorption costing method, income could appear to be lower by producing more inventory.
C) by using the variable costing method, the cost of goods sold will be higher as more units are manufactured and sales remain the same.
D) by using the variable costing method, all fixed and variable costs are included in the unit cost of the product manufactured.
Correct Answer:

Verified
Correct Answer:
Verified
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