Asked by Jason Yechan on Jun 15, 2024

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Absorption costing is usually used for internal management purposes,and variable costing is usually used for external reporting purposes.

Internal Management

The process and practice of effectively running an organisation by its own executives and staff, focusing on policies, strategies, and resource allocation.

External Reporting

The process of preparing and disclosing financial statements and other reports to stakeholders outside the organization.

  • Understand the conceptual differences between absorption costing and variable costing.
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Cidney WallaceJun 17, 2024
Final Answer :
False
Explanation :
Absorption costing is often used for external reporting purposes to comply with generally accepted accounting principles (GAAP), while variable costing is typically used for internal management purposes to aid in decision-making.