Advantages And Drawbacks Of Variable Costing
If 1,000 tables were bought instead, variable costing working revenue would be $97,500 larger than absorption costing. A producer produces tables at a budgeted fastened manufacturing overhead of $50,000 per month. General, variable costing offers management extra accurate and detailed cost data to enhance planning and decisions. However absorption costing is required for exterior monetary reporting. Variable Costing can lead to the understatement of income due to the exclusion...
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