Which of the following is most important in making a short-term special decision?
A)Focus on total costs
B)Separate variable from fixed costs
C)Use a conventional absorption costing approach
D)Calculating the fixed cost per unit

Question

Quizplus · Accepted Answer

Separating variable from fixed costs is the most important in making a short-term special decision as it helps to understand the cost behavior and determine the relevant costs for the decision. Focusing on total costs may lead to including irrelevant costs, while using a conventional absorption costing approach and calculating the fixed cost per unit may not provide accurate information for the decision-making process.

Which of the Following Is Most Important in Making a Short-Term