Variable costing allows a manager to classify controllable costs as
A) either variable or fixed.
B) variable only.
C) fixed only.
D) either short-term variable or long-term variable.

Question

Quizplus · Accepted Answer

Variable costing separates costs into either variable or fixed categories. This allows managers to focus on and potentially control the variable costs, as they are affected by the level of activity. Fixed costs, on the other hand, are not directly affected by changes in activity level and may be more difficult to manage.

Variable Costing Allows a Manager to Classify Controllable Costs as