FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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It known that variable costing should be used for pricing purposes. What is the benefit of using variable costing for pricing? Are there any benefits to using absorption costing for pricing instead? Explain your answer. |
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- PLS HELP ME EXPLAIN OR DISCUSS THIS!arrow_forwardDo you agree from the following statements- Explain in details with examples 1.Variable costs are controllable but fixed costs are not. 1.Sunk costs are irrelevant cost while making any decision.arrow_forwardExplain and illustrate a hybrid costing systemarrow_forward
- Briefly explain the potential negative consequences in pricing decisions from using a traditional, volumebased product-costing system.arrow_forwardDecisions where relevant cost analysis might be used effective is Make or Buy Decision. Explain IN YOUR OWN WORDS what "Make or Buy Decision" is AND MUST USE EXAMPLES IN YOUR DESCRIPTION.arrow_forwardWhy do you use incremental cost analysis when picking alternatives and how do you constuct a choice tablearrow_forward
- Question One Describe the following costing systems: Marginal and Absorption costing Explains the effect on profit of using variable (marginal) and absorption costing. Explain TWO advantages and TWO disadvantages of both marginal and absorption costing systems.arrow_forwardDecisions where relevant cost analysis might be used effective is Sell or process decisions. Explain IN YOUR OWN WORDS what "sell or process decision" is AND MUST USE EXAMPLES IN YOUR DESCRIPTION.arrow_forwardExplain the behavioral problem that can result when cost-plus prices are based on variable cost.arrow_forward
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