Variable Costing Separates the Variable Costs from Fixed Costs and Therefore

question 113

True/False

Variable costing separates the variable costs from fixed costs and therefore makes it easier to identify and assign control over costs.

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Definitions:

Economizing Problem

The need to make choices about how to best use limited resources to satisfy unlimited wants.

Limited Resources

The economic principle that the available resources (such as time, money, and raw materials) are insufficient to satisfy all wants and needs.

Unlimited Wants

The economic concept that human desires and needs are infinite and vary in intensity, contrasting with limited available resources.

Normative

In economics and philosophy, refers to statements or propositions that express values, ethics, or moral prescriptions, indicating how things ought to be.