Variable costing is more useful than absorption costing for:
i. special order decisions
ii. short-term pricing of products
iii. long-term pricing of products
A) i
B) iii
C) i and ii
D) i, ii and iii

Question

Quizplus · Accepted Answer

Variable costing is more useful for special order decisions and short-term pricing of products because it considers only the costs that vary with production, allowing for more relevant decision-making in these contexts. Long-term pricing often requires consideration of fixed costs as well, which are included in absorption costing.

Variable Costing Is More Useful Than Absorption Costing For