Variable Costing Is Used for External Reporting Purposes,and Absorption Costing

question 179

True/False

Variable costing is used for external reporting purposes,and absorption costing is used for internal decision-making purposes.

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Definitions:

Bonus Plan

An incentive scheme that rewards employees with extra payments in addition to their regular salary based on performance.

Significantly Increased

A statistical term describing when an observed value or statistic shows a substantial and unlikely to occur by chance increase from a baseline or reference value.

Population of Differences

A hypothetical or actual collection of differences derived from comparing two sets or populations in a statistical study.

Average Fees

The mean cost or charge for services or admission to events.