One of the most common problems reported by companies using variable costing is the difficulty of classifying costs into fixed or variable categories.

Question

Quizplus · Accepted Answer

Variable costing only considers variable costs and separates them from fixed costs. However, some costs may have elements of both fixed and variable costs, making it challenging to classify them properly. Therefore, companies may face difficulties while distinguishing between fixed and variable costs.

One of the Most Common Problems Reported by Companies Using