Peter Newton,a production supervisor at BeThink,Inc. ,uses variable costing for any cost control decisions that he has to make.Which of the following is the reason for his choice?
A)Fixed costs are not relevant in the long run.
B)Only variable costs are controllable in the long and short run.
C)Absorption costing is not relevant for long-run decisions.
D)Lower management usually does not have control over most fixed costs.

Question

Quizplus · Accepted Answer

Lower management, like a production supervisor, typically does not have control over fixed costs, making variable costing more relevant for their decision-making.

Peter Newton,a Production Supervisor at BeThink,Inc