Question: Question content area top Part 1 The main trouble with variable costing is that it ignores the increasing importance of fixed costs in manufacturing companies.
Question content area top
Part
The main trouble with variable costing is that it ignores the increasing importance of fixed costs in manufacturing companies. Do you agree? Why?
Question content area bottom
Part
A
Yes variable costing does view fixed costs as unimportant which is why it does not include them as an inventoriable cost.
B
No variable costing does not view fixed costs as unimportant. Rather, variable costing maintains that the distinction between behaviors of different costs is crucial for certain decisions.
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