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Find which is not a potential advantage of variable costing

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Reference no: EM132547664

Question 1: Which of the following is not a potential advantage of variable costing relative to absorption costing?

a. Net income calculated under variable costing is unaffected by changes in production levels.

b. Net income calculated under variable costing is not closely tied to changes in sales levels.

c. It is easier to understand the impact of fixed and variable costs on the computation of net income when variable costing is used.

d. The use of variable costing is consistent with cost-volume-profit analysis.

Reference no: EM132547664

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