Question: All things equal, which would be superior: variable or absorption costing? If you were take away the pros and cons of both the variable costing

All things equal, which would be superior: variable or absorption costing?

If you were take away the pros and cons of both the variable costing and absorption costing and look at them for their face value, which system would be the better of the two? Realistically I know that that is not possible and I do understand that absorption costing and variable costing each have their own purposes and uses; however, from the standpoint of a company I am trying to understand the practicality of absorption versus variable costing (if both are considered to be equal).

What I mean by that exactly is, I see (and favor) variable costing as a way of being able to more quickly assist management in making their decisions in regard to a specific product's profitability. The expenses are broken out into line items and (to me) it's much more clear on the various expenses going into a certain product. For example, if there were to be a material change, which also decreased the amount of direct labor and as result the per unit price were to decrease, those changes are able to be easily identified rather than just being all lumped together in one line item.

With absorption costing, I see it more as summary and I think that the long-term decisions could be hindered or made incorrectly.

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