Which of the Following Is NOT a Potential Advantage of Variable

question 20

Multiple Choice

Which of the following is NOT a potential advantage of variable costing relative to absorption costing?

• A)Net income calculated under variable costing is unaffected by changes in production levels.
• B)It is easier to understand the impact of fixed and variable costs on the computation of net income when variable costing is used.
• C)The use of variable costing is consistent with cost-volume-profit analysis.
• D)Net income calculated under variable costing is not closely tied to changes in sales levels.

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Definitions:

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Manipulating Information

The process of handling, organizing, and adapting data or knowledge to understand it better or to achieve a specific outcome.

Transforming Information

The process of changing information from one format or medium to another, often involving interpretation or reorganization.

Strategy Use

The application of planned methods or tactics aimed at achieving specific goals or overcoming obstacles.