Why do companies use variable costing for internal financial statements? A. Production volume variance does...

90.2K

Verified Solution

Question

Accounting

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. A salesoriented company wants to track the effect of sales on net income.

C. Variable costing does not create an incentive to produce additional unneeded units to increase net income.

D. All of the above

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students