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Which costing method is commonly used for external financial reporting and tax purposes?
  • a)
    Marginal costing
  • b)
    Variable costing
  • c)
    Absorption costing
  • d)
    Fixed costing
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which costing method is commonly used for external financial reporting...
Absorption costing is commonly used for external financial reporting and tax purposes as it includes all production costs and provides a comprehensive view of costs.
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Which costing method is commonly used for external financial reporting and tax purposes?a)Marginal costingb)Variable costingc)Absorption costingd)Fixed costingCorrect answer is option 'C'. Can you explain this answer?
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