Luis Perez,a production supervisor at Serum Medical,Inc.,uses variable costing for any cost control decisions that he has to make.Which of the following is the reason for his choice?

Question

Quizplus · Accepted Answer

Lower management, like a production supervisor, typically does not have control over fixed costs, which are often determined by higher-level management decisions. Variable costing focuses on costs that can be controlled or influenced by lower management, making it more relevant for their decision-making.

Luis Perez,a Production Supervisor at Serum Medical,Inc