Absorption costing is required for external reporting under generally accepted accounting principles. a. TRUE b. FALSE 16:54 13 16:54 The person evaluating a manager should consider a. any deviation from budgeted amounts as an item that should be investigated. b. all favorable variances as indications of good performance. C. that all unfavorable variances indicate poor performance. d. that managers will focus their attention on those measures that they know will be part of their evaluation. 16:55