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A- Variable costing is more relevant to long-run pricing strategies.
B- Variable costing complies with the U.S internal revenue code.
C- Variable costing complies with the generally accepted accounting principles.
D- Variable costing makes cost-volume relationships more easily apparent.
Variable costing makes cost -volume relationships more easily apparent which is an advantage of using variable costing.
D is the correct answer
Variable costing makes cost-volume relationships more easily apparent.
A, C & D ARE ALL CORRECT. Long term Pricing strategies can be easily implemented since variable costing provides vital information about materials, labour and overheads price fluctuation which can be used for budget planning, financial projection and profit and investment maximization
.Complies with general accepted accounting principles of accuracy, quality, reliability and completeness of financial information and report.
Cost-Volume relationship can easily be identified and controlled for the benefit of shareholders.
ADVANTAGE OF USING VARIABLE COSTING ARE MORE RELEVANT TO LONG-RUN PRICING STRATEGIES, AND COMPLY WITH THE GENERAL ACCEPTED ACCOUNTING PRINCIPLES,
