gaap is the common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of trustworthy standards and simply the commonly accepted ways of copy and reporting accounting information.
Limitations of Variable Costing – GAAP and External Reports: Learning Objectives: What are the limitations of variable costing? Is variable costing acceptable for external reports? Do financial statements prepared under variable costing system conform to generally accepted accounting principles (GAAP)? Practically speaking, absorption costing
Generally Accepted Accounting Principles (GAAP): Generally accepted accounting principles (GAAP) are those principles that have substantial authoritative support. The AICPA’s code of professional conduct requires that members prepare financial statements in accordance with generally accepted accounting principles (GAAP). Specifically rule 203 of this code