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Which one of the following is an advantage of using variable costing?

A- Variable costing is more relevant to long-run pricing strategies.

B- Variable costing complies with the U.S internal revenue code.

C- Variable costing complies with the generally accepted accounting principles.

D- Variable costing makes cost-volume relationships more easily apparent. 

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Question added by Mobeen Tahir , Credit Officer , Tawuniya Insurance
Date Posted: 2015/04/27
Md. Moshiur Rahman Sumon
by Md. Moshiur Rahman Sumon , Assistant General Manager( Corporate Finance & Head of Internal Audit) , Progressive Life Insurance Company Limited

Variable costing makes cost -volume relationships more easily apparent which is an advantage of using variable costing.

D is the correct answer

ahsan raza
by ahsan raza , principal , saint francis degree college saria alamgir

Variable costing makes cost-volume relationships more easily apparent. 

Mohamed Billow
by Mohamed Billow , Financial & Tax Consultant , Mabrook Computers Limited, Hu One Constructions Limited, Aqsa Investment Limited and Hanat Ltd

A, C & D ARE ALL CORRECT. Long term Pricing strategies can be easily implemented since variable costing provides vital information about materials, labour and overheads price fluctuation which can be used for budget planning, financial projection and profit and investment maximization

.Complies with general accepted  accounting principles of accuracy, quality, reliability and completeness of financial information and report.

Cost-Volume relationship can easily be identified and controlled for the benefit of shareholders.

nguyen thanh
by nguyen thanh , bartender , for Jumeirah emirates towers Hotel

ADVANTAGE OF USING VARIABLE COSTING ARE MORE RELEVANT TO LONG-RUN PRICING STRATEGIES, AND COMPLY WITH THE GENERAL ACCEPTED ACCOUNTING PRINCIPLES,

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