For short-term pricing decisions,variable costing is an appropriate costing method to use.

Question

Quizplus · Accepted Answer

Variable costing only considers the variable costs associated with producing a product or providing a service, and is therefore more appropriate for short-term pricing decisions. This is because fixed costs, which are not included in variable costing, tend to remain the same in the short-term regardless of production levels.

For Short-Term Pricing Decisions,variable Costing Is an Appropriate Costing Method