Why is variable costing not in compliance with generally accepted accounting principles? a. Fixed manufacturing costs are assumed to be period costs. b. Variable costing procedures are not well known in industry. c. Net earnings are always overstated when using variable costing. d. Variable costing ignores the concept of lower of cost or market when valuing inventory.

Why is variable costing not in compliance with generally accepted accounting principles? a. Fixed manufacturing costs are assumed to be period costs. b. Variable costing procedures are not well known in industry. c. Net earnings are always overstated when using variable costing. d. Variable costing ignores the concept of lower of cost or market when valuing inventory.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 20MC: Product costs under variable costing are typically: A. higher than under absorption costing B. lower...

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