When determining the product costs for long-term planning,________.

Question

Quizplus · Accepted Answer

Absorption costing is more appropriate for long-term planning as it includes all direct and indirect costs associated with the production of a product, including research and development costs, and selling and administrative expenses. Variable costing only includes variable costs, which may not accurately reflect the total costs of production. Ignoring any costs could result in an inaccurate determination of product costs.

When Determining the Product Costs for Long-Term Planning,________