Which method is required? For external financial reporting, which costingmethod is required?a) Variable costingb) Absorption costingc) Direct costingd) Standard costing

Hello student! Absorption Costing is required for external financial reporting because it follows…

Answered: For external financial reporting, which…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 15Q: Can a company gather information for both variable and absorption costing systems?

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Similar questions

The ability to assign a cost directly to a cost object by means of a causal relationship is a. allocation b. traceability c. separability d. value chain process
What advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?
Explain how a scatter graph is used to identify and measure cost behavior.
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Discuss how financial data prepared on the basis of variable costing can assist management in the development of short-run pricing policies.
Which costs are assigned using the weighted-average method?
Explain the components of the total cost equation and describe how each of the components can be used by management for decision-making.
How does absorption costing differ from variable costing? When will absorption-costing operating income exceed variable-costing operating income?
Can a company gather information for both variable and absorption costing systems?
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Which of the following is the format of the income statement that is MOST useful in decision-making? Select one: A. Multiple-step format B. Absorption costing format C. Single-step format D. Contribution margin format
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For external financial reporting, which costing method is required? a) Variable costing b) Absorption costing c) Direct costing d) Standard costing