$"$The main trouble with variable costing is that it ignores the increasing importance of fixed costs in modern$$ manufacturing." Do you$$ agree? Why?

Question content area bottom

Part $1$

A$.$

Yes. The main disadvantage of variable costing is that it ignores the increasing importance of fixed costs in modern manufacturing.$$ However, variable costing is the preferred costing method by companies from the service sector and the merchandising sector.

B$.$

Yes. Variable costing does not view fixed costs as important.$$ Therefore, under this$$ method, fixed costs are not included as an inventoriable cost.

C$.$

No$.$ Variable costing does not view fixed costs as unimportant.$$ Rather, variable costing maintains that the behaviour of a cost is crucial for decision making.

D$.$

Both A and B$.$