Which of the Following Is a Potential Advantage of Variable

question 52

Multiple Choice

Which of the following is a potential advantage of variable costing relative to absorption costing?

• A) Net income is affected by changes in production levels.
• B) The use of variable costing is consistent with cost-volume-profit analysis.
• C) Net income computed under variable costing is not closely tied to changes in sales levels.
• D) More than one of the above.

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