Asked by Samuel Flores on Jun 26, 2024
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Variable costing is the only acceptable basis for both external reporting and tax reporting.
Variable Costing
A costing method in which all variable manufacturing costs are included as inventory costs, while fixed manufacturing overhead is treated as an expense in the period incurred.
External Reporting
External reporting involves the preparation and presentation of financial statements and other reports by a company to provide financial and operational information to external stakeholders, such as investors, creditors, and regulatory agencies.
- Acquire knowledge of the primary disparities between absorption costing and variable costing methodologies.
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Learning Objectives
- Acquire knowledge of the primary disparities between absorption costing and variable costing methodologies.
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