Which Type of Costing System Can Only Be Used for Internal

question 282

Multiple Choice

Which type of costing system can only be used for internal financial reporting because it is unacceptable by GAAP?

• A)Prime costing
• B)Out-of-pocket costing
• C)Variable costing
• D)Absorption costing

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Definitions:

Esophagus

A muscular tube that transports food from the throat to the stomach, playing a key role in the digestive system.

Gallbladder

A small organ that stores bile produced by the liver, releasing it into the small intestine to aid in the digestion of fats.

Bicarbonate

A negatively charged ion (HCO3-) that is a form of carbon dioxide in solution, playing a vital role in the buffering of blood pH.

Pancreas

The pancreas is an organ involved in digestion and blood sugar regulation, producing digestive enzymes and insulin, respectively.