Dog All the following are true for absorption costing, exceptO is used for GAAP reporting purposes.O treats fixed manufacturing overhead as a period cost.O is used for external reporting purposes only.is also known as standard costing. A disadvantage of absorption costing isthat it is not useful in management's decision-making process.O that it might encourage inventory buildup when there is no demand.O both answers are correct.O none of the answers are correct.

Hi studentSince there are multiple questions, we will answer only first question.Absorption costing…

All the following are true for absorption costing, except O is used for GAAP reporting purposes. O treats fixed manufacturing overhead as a period cost. O is used for external reporting purposes only. is also known as standard costing.

All the following are true for absorption costing, except O is used for GAAP reporting purposes. O treats fixed manufacturing overhead as a period cost. O is used for external reporting purposes only. is also known as standard costing.

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter7: The Conversion Cycle

Section: Chapter Questions

Problem 9MCQ: Which of the following statements regarding traditional accounting is true? a. Traditional...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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Dog

All the following are true for absorption costing, except
O is used for GAAP reporting purposes.
O treats fixed manufacturing overhead as a period cost.
O is used for external reporting purposes only.
is also known as standard costing.

A disadvantage of absorption costing is
that it is not useful in management's decision-making process.
O that it might encourage inventory buildup when there is no demand.
O both answers are correct.
O none of the answers are correct.

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