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To Reduce the Undesirable Incentives to Build Up Inventories That

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To reduce the undesirable incentives to build up inventories that absorption costing can create, a number of companies use variable costing for internal reporting.


Definitions:

Interpersonal Skills

The abilities and attributes necessary to effectively communicate, interact, and work with others.

Psychological Processes

Internal mental mechanisms such as perception, memory, thinking, and emotion that underlie an individual's behavior and interaction with the environment.

Rogers

Refers to Carl Rogers, an influential American psychologist known for his humanistic approach to psychology and development of client-centered therapy.

Bridges

Structures constructed to span physical obstacles, or metaphorically, strategies or processes to connect disparate points or concepts.

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