Cost Information from Both Absorption Costing and Variable Costing Can

question 184

True/False

Cost information from both absorption costing and variable costing can aid managers in pricing.

---

Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used in capital budgeting to analyze the profitability of an investment.

Net Cash Flows

The variance between the amount of money entering and leaving a business over a set timeframe.

Desired Rate

Typically refers to an interest rate or return rate that an investor or entity aims to achieve on an investment or project.

Capital Investment

Funds invested in a firm or enterprise for the purpose of furthering its business objectives, including acquiring fixed assets.