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In this scene from Dostoevsky's The Brothers Karamazov, Ivan Karamazov explains to his pious younger brother, Alyosha, a Christian monk, why he cannot accept God. Ivan's impediment to full devotion to God is the problem of evil. He declares that there is untold, unfathomable suffering in the world-suffering such as that of a little child who is tortured, mutilated, and murdered by a ruthless general for no reason. God allows this suffering, but no adequate justification or explanation can be given why God would permit such evil.
-Ivan asks Alyosha if he would consent to the torture and killing of one tiny child if the act would give all of humanity ultimate peace and happiness. To this Alyosha answers
Variable Costing
A costing method where only variable production costs are included in product costs, with fixed overhead expenses treated as period costs.
Contribution Format
A method of income statement presentation that separates fixed costs from variable costs to highlight the contribution margin.
Reconciliation Method
A process used in accounting to ensure that two sets of records (usually the balances of two accounts) are in agreement.
Absorption Costing
A calculation method for product pricing that includes all components of manufacturing costs—direct materials, direct labor, both variable and fixed overheads— into the product's overall cost.
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