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Essay heading: Variable and absorption costing
Essay specific features
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Business |
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| Date added: |
September 13, 2002 |
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3 / 566 |
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0 times |
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Essay content:
The fixed costs will be incurred anyway, and in the short term they should be disregarded. In making these decisions, the variable costs provide a good measure of the differential costs that need to be assessed.
Under variable costing, profit is a function of sales. The classification of costs, as fixed or variable, makes it simple to project the effects that changes in sales have on profit... displayed 300 characters
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The fixed costs will be incurred anyway, and in the short term they should be disregarded. In making these decisions, the variable costs provide a good measure of the differential costs that need to be assessed.
Under variable costing, profit is a function of sales. The classification of costs, as fixed or variable, makes it simple to project the effects that changes in sales have on profit... displayed next 300 characters
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