Business, 27.04.2021 16:00 smuindi3293
Operating income is one of the most important items reported by a company. Depending on the decision-making needs of management, operating income can be determined using absorption costing or variable costing. Select whether the following characteristics are most often associated with absorption costing or variable costing.
a. Required under generally accepted accounting principles (GAAP)
b. Often used for internal use in decision making
c. Cost of goods manufactured includes only variable manufacturing costs
d. Used in reports prepared for external users
e. Fixed factory overhead costs are not part of cost of goods manufactured
f. Both fixed and variable factory costs are included in cost of goods sold and inventory
Answers: 2
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Operating income is one of the most important items reported by a company. Depending on the decision...
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