10. Variable costs (3 marks) Expired costs (3 marks) QUESTION 2 (10 Marks) Absorption and direct costing are two popular methods of costing in management accounting. Absorption costing is seen to be preferable to long term decision making due to the fact that it complies with the IAS in terms of valuation of inventory. Direct costing, on the other hand, is seen to be preferred by management accountants in the short term. Refer to the information below and answer the questions that follow The following information was extracted from the accounting records of Cradle Ltd for the months ended 31 July 2019 and 31 August 2019 respectively: Month ended 31 July 2019 Sales for the month Production for the month Finished units at the beginning of the month Variable production costs per unit Variable selling and administration costs per unit Fixed production costs Fixed selling and administration costs Odule Name meline Test Units R 900 21 600.00 1.000 0 5.40 3.00 4 600.00 3 100.00