The Variable Costing Format Is Often More Useful to Managers

question 35

Multiple Choice

The variable costing format is often more useful to managers than the absorption costing format because

• A)costs are classified by their behavior.
• B)costs are always lower.
• C)it is required for external reporting.
• D)it justifies higher product prices.

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Definitions:

Expected Value

A calculation used in statistics and probability theory to determine the anticipated result of an event, considering all possible outcomes and their probabilities.

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The amount paid for an insurance policy, either regularly or as a lump sum.

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A specific insurance coverage against property loss from flooding, typically required for buildings in designated flood-prone zones.