It is a false statement that variable costing prepares the income statement using the traditional format because it is for allocation of production costs.
<h3>What is variable costing?</h3>
Variable costing refers to an accounting method that is used to allocate production costs to product being produced.
This method of costing allocates all variable-manufacturing costs to the product during the period.
Furthermore, a variable costing assigns only variable costs to the products.
In conclusion, it is a false statement that variable costing prepares the income statement using the traditional format because it is for allocation of production costs.
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