Why is variable costing a better support for short-term planning and decision making than absorption costing?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (17 reviews)
Advocates of variable costing argue that variable costing si...View the full answer
Answered By
OTIENO OBADO
I have a vast experience in teaching, mentoring and tutoring. I handle student concerns diligently and my academic background is undeniably aesthetic
4.30+
3+ Reviews
10+ Question Solved
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Question Posted:
Students also viewed these Managerial Accounting questions
-
Why is variable costing used only for internal reporting and not for external financial reporting?
-
Why do many managers prefer variable costing over absorption costing?
-
Time Keeper, Inc., produces wrist watches. The company has no finished goods inventory at the beginning of year 1. The following information pertains to Time Keeper, Inc. Absorption Costing Versus...
-
Paul made the following acquisitions and disposals of ordinary shares in Crimmon plc: No further shares were acquired during 2020. Against which acquisitions will each of the above disposals be...
-
1. Evaluate Urban Outfitters designed-for-Europe strategy in light of decreased profitability due in part to increased overhead. Was this a wise decision? Explain. 2. Is the company moving too fast...
-
Would failure of ME3 will cause ME2 to fail? Explain your answer. How long will it take to compute the sum of 65 numbers using 7 processors, assuming time for one addition is "a" unit of time. Make...
-
Consider the wine quality of young red wines data in Table B.19. For the purposes of this exercise, ignore regressor $x_{1}$. Perform a thorough residual analysis of these data. What conclusions do...
-
Chen Mo-Wan was at home when he received a call from the fire department telling him his store had burned. His business was a total loss. The insurance company asked him to prove his inventory loss....
-
Can you elaborate on the iterative nature of your strategic planning process, highlighting mechanisms for continuous learning, adaptation, and refinement in response to evolving environmental...
-
Petrol is collected for Indian Oil Corporation for sales from nearest 'n' storage points to the Collection point. Given the amount of petrol from 'n' storage points in liters(L) and milli liters...
-
Tough times can bring out the worst in people. When companies are desperate to stay in business or to report more favourable earnings to the market, some managers just cant seem to resist the...
-
Delone Industries had $125,000 in sales and reported a $75,000 profit in its annual report to shareholders. According to a CVP analysis prepared for managements use, $125,000 in sales is the...
-
List four practical ways that an analyst can improve the ease of user navigation and the stickiness of an ecommerce Web site.
-
Two point sources of 500-nm light are separated by a distance of 1 cm. Light from the two sources passes through a narrow slit 10 m away, and then falls on a screen of photographic paper 1 m behind...
-
How does Bourdieu's theory of social capital elucidate the ways in which social networks and cultural resources facilitate the acquisition and accumulation of symbolic power within a given social...
-
Hayes Jewelers is a jewelry wholesaler. Lowell was employed by Hayes as a traveling sales representative. He drove his own vehicle to meet clients and attend trade shows. His practice was to keep the...
-
What role does globalization play in transforming patterns of deviance and social control, as transnational flows of capital, information, and people create new opportunities and challenges for...
-
Steph made a purchase on her credit card for $945. She had no previous balance, or amount unpaid from the month before. Her new balance, or amount now owed, is $945. She is only able to pay the...
-
In the case of a two-dimensional system that is not almost linear, the trajectories near an isolated critical point can exhibit a considerably more complicated structure than those near the nodes,...
-
Which of the following is NOT a magnetic dipole when viewed from far away? a) A permanent bar magnet. b) Several circular loops of wire closely stacked together with the same current running in each...
-
What are unit-level, batch-level, product-level, customer-level, and organization-sustaining activities?
-
What types of costs should not be assigned to products in an activity-based costing system?
-
What types of costs should not be assigned to products in an activity-based costing system?
-
Mizan Corporation, a manufacturing company, prepares its financial statements annually. During the last month of the fiscal year, Mizan experiences a significant surge in sales. The sales team closes...
-
A firm uses job - order costing. Current period facts: Actual overhead: $ 1 0 4 , 6 8 8 Applied overhead: $ 1 0 4 , 9 0 5 Budgeted overhead: $ 1 0 8 , 6 9 8 COGS balance ( before closing ) : $ 3 9 0...
-
On January 1 , 2 0 X 2 P pays $ 1 0 0 million to acquire 5 0 , 0 0 0 of the common voting shares of S , which gives P a 2 5 % ownership interest in S . The January 1 , 2 0 X 2 book value of S ' s...
Study smarter with the SolutionInn App