Consider the Following Statements About Absorption Costing and Variable Costing

question 37

Multiple Choice

Consider the following statements about absorption costing and variable costing:
I. Variable costing is consistent with contribution reporting and cost-volume-profit analysis.
II. Variable costing must be used for external financial reporting.
III. A number of companies use both absorption costing and variable costing.
Which of the above statements is (are) true?

• A) I only.
• B) II only.
• C) III only.
• D) I and II.
• E) I and III.

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Definitions:

Human Capital Perspective

Viewing employees as valuable resources whose skills and abilities contribute to organizational success.

Differential HR Strategy

An approach in human resources that applies different policies and practices based on employee roles, skills, or performance levels.

Competitive Advantage

The special characteristics or conditions that give a business an edge over its competition.

Human Resources

The department within an organization responsible for managing all issues related to the employees, including recruitment, training, development, and compensation.