Asked by Jason Yechan on Jun 15, 2024
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Absorption costing is usually used for internal management purposes,and variable costing is usually used for external reporting purposes.
Internal Management
The process and practice of effectively running an organisation by its own executives and staff, focusing on policies, strategies, and resource allocation.
External Reporting
The process of preparing and disclosing financial statements and other reports to stakeholders outside the organization.
- Understand the conceptual differences between absorption costing and variable costing.
Verified Answer
Learning Objectives
- Understand the conceptual differences between absorption costing and variable costing.
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