Full costs are calculated in advance to assist management in:

Question

Quizplus · Accepted Answer

Full costs include both variable and fixed costs, providing management with a clear understanding of the total cost of producing a product or providing a service. This information can be used to set prices that will allow for the achievement of desired profit margins during the year. By doing this calculation in advance, it will also save time at the end of the year when determining profit.

Full Costs Are Calculated in Advance to Assist Management In