Why Is Variable Costing Not in Accordance with Generally Accepted

question 43

Multiple Choice

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.

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Definitions:

Figurative Comparison

The act of likening one thing to another through the use of metaphors, similes, or other figurative language to clarify or add depth to a description.

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The aspects or characteristics that two or more items have in common, allowing for comparison or grouping.

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A direct comparison between two unlike things that share some common characteristic, without using "like" or "as."