Why does variable costing provide more useful information than absorption costing for making internal decisions?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (10 reviews)
Use of monetary quantitative information varies greatly between external and internal users External ...View the full answer
Answered By
Ashish Jaiswal
I have completed B.Sc in mathematics and Master in Computer Science.
4.90+
20+ Reviews
39+ Question Solved
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Question Posted:
Students also viewed these Cost Accounting questions
-
Why does the variable costing approach provide more useful information for making internal decisions?
-
Why is a variable costing income statement more useful than a traditional income statement for understanding and evaluating a profit centers performance?
-
Why do accrual-basis financial statements provide more useful information than cash-basis statements?
-
Using examples outline the main advantages and disadvantages of one of the following models of corporate governance: i) The principal/agent model ii) The stakeholder mode
-
Comparative financeial statement data of Sanfield Optical Mart follow: Other information: 1. Market price of Sanfield common stock: $89.38 at December 31, 2016, and $85.67 at December 31, 2015 2....
-
Few IPOs have garnered as much attention as social media giant Facebooks public offering on May 18, 2012. It was the biggest IPO in Internet history, easily topping Googles initial public offering...
-
A four cylinder, four stroke petrol engine has the swept volume of 1750 c.c. It develops \(27 \mathrm{~kW}\) at \(1000 \mathrm{rpm}\). Mean effective pressure is \(5 \mathrm{bar}\). Find the average...
-
Christensen Shipyards built a 155-foot yacht for Tiger Woods at its Vancouver, Washington, facilities. It used Tigers name and photographs relating to the building of the yacht in promotional...
-
On January 2, Year 1, a motorcycle dealer sells a motorcycle with an extended warranty for two years beyond the manufacturer's two-year warranty and an agreement to service the vehicle for the first...
-
Petal Providers Corporation, described in Problem 5, is interested in estimating its sustainable sales growth rate. Last year, revenues were $1 million; net profit was $50,000; investment in assets...
-
Is variable or absorption costing generally required for external reporting? Why is this method preferred to the alternative?
-
What are the income relationships between absorption and variable costing when production volume differs from sales volume? What causes these relationships to occur?
-
For each of the following species, add charges wherever required to give a complete, correct Lewis structure. All bonds and nonbonded valence electrons are shown. (a) (b) (c) (d) (e) (f) H-O-C-H...
-
The IRC allows individuals and businesses to make noncash contributions to qualifying charities and to claim deductions for these contributions on their income tax returns. The Internal Revenue...
-
Investment portfolio rebalancing is part of which phase in the investment planning process? I. Planning. II. Implementation. III. Monitoring. IV. Updating. A. I. B. I, II. C. III. D. II, IV.
-
Robert purchased a single life annuity for \($100,000.\) His lifetime monthly payment is \($1,000.\) According to actuarial tables, Roberts life expectancy is 10 years. Which is correct? A. If Robert...
-
Investors in real estate seek which objective? A. High correlation with common stock. B. Liquidity. C. Long-term growth. D. Low correlation with inflation.
-
Regarding contributions to an HSA, which of the following statements is incorrect? A. Contributions can be made by the employer or the individual, or both. B. Contributions made by the employer are...
-
Write a short essay (250300 words) on the following subject: Budgeting is a technical accounting exercise with no behavioural aspects.
-
If (x) 0 on the interval [a, b], the definite integral gives the exact area under the curve between x = a and x = b.
-
Consider heat conduction in a semiinfinite slab, where the slab is initially ( t = 0 ) ( t = 0 ) at a constant temperature u m u m and the end of the slab (at x = 0 x = 0 ) is maintained at the...
-
Due to the terms of its lease, Peachtree Services, Inc., pays the rent for its new office space in one annual payment of $24,000 on August 1, 2016. The lease covers the period of August 1, 2016,...
-
Gerbig, Inc., collects cash from customers in advance and from other customers after the sale. Journalize the following transactions for Gerbig: a. Accrued revenue. Some customers pay Gerbig after...
-
Suppose Tree City Sporting Goods Company reported the following data at July 31, 2016, with amounts in thousands: Use these data to prepare Tree City Sporting Goods Company's single-step income...
-
The wheels of a skateboard roll without slipping as it accelerates at 0.45 m/s down an 80-m-long hill. Part A If the skateboarder travels at 1.5 m/s at the top of the hill, what is the average...
-
A 2.30 g air-inflated balloon is given an excess negative charge, q = -3.50 10-8 C, by rubbing it with a blanket. It is found that a charged rod can be held above the balloon at a distance of d =...
-
A positive charge q = 2.60 C on a frictionless horizontal surface is attached to a spring of force constant k as in the figure shown below. When a charge of 42 = -8.350 C is placed 9.50 cm away from...
Study smarter with the SolutionInn App