Do you believe such accounting standards should permit the use of the variable costing approach and the contribution format for the income statement presentation?

Posted: February 25th, 2022

Both U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) explicitly require the use of the absorption costing method for valuing product inventories.  Do you believe such accounting standards should permit the use of the variable costing approach and the contribution format for the income statement presentation? Why or why not? Share the basis for your conclusion?