Managers Can Use Variable Costing Information for Internal Decision Making

question 52

True/False

Managers can use variable costing information for internal decision making, but they must use absorption costing for external reporting purposes.

---

Definitions:

Economy

An economy encompasses all activities related to production, consumption, and trade of goods and services in an area or country.

Balance of Trade

The variation in worth between what a country buys from and sells to other countries during a specific time frame.

Electricity

A form of energy resulting from the existence of charged particles, widely used for lighting, heating, and powering machines and devices.

1920s

A decade characterized by economic prosperity and cultural flourishing in the United States, also known as the "Roaring Twenties."