Which of the following is(are)reason(s)for easy identification and control of variable manufacturing costs under the variable costing method?
A) variable and fixed costs are reported separately.
B) variable costs can be controlled by the operating management.
C) fixed costs,such as property insurance,are normally the responsibility of higher management not the operating management.
D) All of the above are true.

Question

Quizplus · Accepted Answer

All of the options listed are reasons for easy identification and control of variable manufacturing costs under the variable costing method. By reporting variable and fixed costs separately, operating management can focus on controlling variable costs, which are directly influenced by their decisions and actions. Fixed costs, which are normally the responsibility of higher management, are largely outside of their control. As a result, variable costing can help to strengthen the link between costs, operating decisions, and profitability.

Which of the Following Is(are)reason(s)for Easy Identification and Control of Variable