Why is variable costing not in accordance with generally accepted accounting principles?
a. Fixed manufacturing costs are treated as period costs under variable costing.
b. Variable costing procedures are not well known in industry.
c. Net earnings are always overstated when using variable costing procedures.
d. Variable costing ignores the concept of lower of cost or market when valuing inventory.
A
You might also like to view...
Which item below lasts longer than emotions?
A. emotions B. instinct C. mood D. affects
To a libertarian, it is not unjust for some people to accumulate fortunes while others live in poverty
a. True b. False Indicate whether the statement is true or false
Because most regular checking accounts do not pay interest, you should keep only enough funds in your account to cover anticipated expenses with a small reserve for unanticipated expenses
Indicate whether the statement is true or false.
In periods of inflation, accounting depreciation is __________ relative to replacement cost, and real economic income is________.
A. overstated; overstated B. overstated; understated C. understated; overstated D. understated; understated E. correctly stated; correctly stated