Variable Costing

It is easily understood and preferred for internal analysis (correct)

It simplifies the understanding of the income statement

It separates fixed and variable costs

It provides necessary information for cost volume profit analysis

Profit and losses are only affected by inventory variation

Profit and losses are only affected by production variation

Profit and losses have no relationship with sales revenue (correct)

Profit and losses are affected by inventory and production variation

By separating fixed and variable costs (correct)

By providing necessary information for cost volume profit analysis

By preparing the income statement in a contribution margin format

By being easily understood and preferred for internal analysis

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<p>The variable costing system and the standard costing system are closely related</p> Signup and view all the answers