Question: Why do company still use variable costing even if the standard is requiring absorption costing?

Why do company still use variable costing even if the standard is requiring absorption costing?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

The Counting Crows Company uses normal costing. The company began operations at the beginning of Year 1. Because the company is new and because they only make one product, overhead is charged to...

Q:

Consider the following information for Atlassian Corp. for the year ended December 31, 2015: Sales 38,000 units Sales price $50 per unit Variable manufacturing costs $1,400,000 Fixed manufacturing...

Q:

When a company may use variable costing and absorption costing system? What denominator-level capacity concepts emphasize the output a plant can supply? What denominator-level capacity concepts...

Q:

Listen to the following videos and then complete the assignments using the changed numbers on the guidance report. Place your answers on the guidance report. Open the Guidance Report and rework the...

Q:

Mastery Problem: Variable Costing for Management Analysis Question Content Area Absorption vs. Variable Operating income is one of the most important items reported by a company. Depending on the...

Q:

132101 1. 2 Calculate all of the Labour Variances calculate all the alerhead Variances. al Activity Based The company uses ABB Budget methods for its manufacturing Budgers Actity - Cost Driver...

Q:

its a cost accounting question please provide me a full solution thank you. Question for Chapter 7 Jam Life Inc. manufactures jam products. It makes a mixed fruit and berry jam by blending...

Q:

2. Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: $ 25 Variable cost per unit: Direct materials Fixed...

Q:

Clute Company introduced a new product three years ago. Clute uses standard costing to account for the costs. The predetermined fixed overhead rate is based on budgeted normal utilization of 10,000...

Q:

I need formulas for every answer. Please clearly show them. Comparing Variable and Absorption Costing Addison, Inc, makes a single product, an indoor fireplace, and has provided data from last year...

Q:

cost of the product is Rs. 120 per unit and the fixed cost for the year is Rs. 96,000. A company produces a single product and sells it at Rs. 200 each. The variable Calculate: (i) P/V ratio. (ii)...

Q:

What is the return on equity for a bank that has an equity multiplier of 4.62, an interest expense ratio of 8.80%, and a return on assets of 3.79%?

Q:

After a 7 3 0 hour heat treatment at 1 1 2 0 C the concentration of A is 2 . 8 w t % at the 3 . 7 mm position within Metal B . At what temperature ( in Kelvin ) must the diffusion couple need to be...

Q:

question 1 8 : The main disadvantage of Exporting is a . high initial investment b . fewer opportunities to learn c . risking scarce assets d . high failure riskquestion 1 9 Walmart agrees to a $ 1 6...

Q:

Many consider Jobs to have been an emotional person. How should you deal and not deal with emotional outbursts?

Q:

Which of the implied behaviors (passive, aggressive, or assertive) has Travis Kalanick been known to employ in his interactions and transactions with others?

Q:

What style or styles of conflict do you believe Steve employed at Apple? Explain your answer.