176. CSO: 1C1e LOS: 1C1f
Which one of the following is the best reason for using variable costing?
a. Fixed factory overhead is more closely related to the capacity to produce than to
the production of specific units.
b. All costs are variable in the long term.
c. Variable costing is acceptable for income tax reporting purposes.
d. Variable costing usually results in higher operating income than if a company
uses absorption costing.
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