Variable Costing

HardWorkingLearning avatar
HardWorkingLearning
·
·
Download

Start Quiz

Study Flashcards

5 Questions

According to the text, why do managers prefer variable costing?

It is easily understood and preferred for internal analysis

According to the text, which statement is true about profit and losses in relation to sales revenue?

Profit and losses have no relationship with sales revenue

According to the text, how does variable costing simplify the understanding of the income statement?

By separating fixed and variable costs

According to the text, why is the income statement prepared in a contribution margin format under the variable costing system?

To provide necessary information for cost volume profit analysis

According to the text, what is the relationship between the variable costing system and the standard costing system?

The variable costing system and the standard costing system are closely related

Test your knowledge on variable costing and its benefits for managers in planning, control, and analysis. Learn why it is the preferred method for internal analysis and how it separates fixed and variable costs.

Make Your Own Quizzes and Flashcards

Convert your notes into interactive study material.

More Quizzes Like This

Use Quizgecko on...
Browser
Browser