Multiple Choice QuestionThe costing system which is considered acceptable for external reporting under U.S. GAAP isMultiple choice question.internal costingvariable costingfixed costingabsorption costing
Question
Multiple Choice QuestionThe costing system which is considered acceptable for external reporting under U.S. GAAP isMultiple choice question.internal costingvariable costingfixed costingabsorption costing
Solution
The correct answer is "absorption costing". Under U.S. GAAP, absorption costing is considered acceptable for external reporting. This method takes into account all of the costs of production, not just the direct costs, making it a more comprehensive reflection of cost of goods sold during a particular period.
Similar Questions
Fill in the Blank QuestionFill in the blank question. (absorption, variable) costing is acceptable for external reporting under U.S. GAAP.
Multiple Choice QuestionWhich costing method can be helpful to management in setting prices because it reflects full costs that sales must exceed for the company to be profitable?Multiple choice question.Absorption costingVariable costing
Multiple Choice QuestionDifferences in income between variable costing and absorption costing is due toMultiple choice question.salesreportingtimingexpenses
Multiple Choice QuestionThe internal use of accounting statements by managers in planning and directing the organization's activities is referred to as ______.Multiple choice question.cost accountingmanagerial accountingplan accountingbookkeeping
Multiple Choice QuestionA departmental contribution to overhead report is based on:Multiple choice question.service department allocationsuncontrollable costscontrollable costs
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.