MJC Co. is considering adopting a variable costing system using variable costing rather than absorption costing will be more advantageous to MJC because the variable costing system

MJC Co. is considering adopting a variable costing system using variable costing rather than absorption costing will be more advantageous to MJC because the variable costing system
A . more readily provides data needed for cost/volume/profitanalyses done by management
B. focuses on gross profit as the best indicator of a company’s ability to cover its expenses
C. assigns all costs of manufacturing to products in order to properly match cost of production with revenues
D. allows the financialstatements released to internal users to agree with the GAAP financial statements issued for external use

Answer: A