Match the appropriate costing method to the description (8 points)

a.	Absorption costing only
b.	Variable costing only
c.	Both absorption and variable costing

1. Treats fixed selling cost as a period cost.

2. Required by generally accepted accounting principles.

3. Treats fixed manufacturing cost as a period cost.

4. Operating income is impacted by changes in inventory level.

5. Generally provides the most useful report for controlling costs.

6. Generally provides the most useful report for setting long-term prices.

7. May be used in a manufacturing company.

8. Includes gross profit on the income statement.