Variable Costing Allows a Manager to Classify Controllable Costs as

question 6

Multiple Choice

Variable costing allows a manager to classify controllable costs as

• A)variable and fixed costs.
• B)avoidable and unavoidable costs.
• C)necessary and unnecessary costs.
• D)short-term and long-term variable costs.

---

Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition changes in the investee's net assets.

Common Shares

Equity securities that represent ownership interests in a corporation, including voting rights and dividends.

Net Income

The amount of profit left after all operating expenses, taxes, and other costs have been subtracted from total revenue.

Structured Entity

A financial entity designed to segregate certain risks, assets, or activities, often used in complex financial structures to achieve specific objectives.