(CGA)Which of the following statements is true about the variable cost method?
A)It is always inappropriate for performing a profitability analysis
B)It is useful for determining the price of a product for a special order
C)It is always useful when fixing the price for a long period
D)It is helpful for performing target costing

Question

Quizplus · Accepted Answer

The variable cost method is useful for determining the price of a product for a special order, as it considers only the variable costs associated with producing that product. It may not always be appropriate for performing a profitability analysis or fixing the price for a long period, and while it can be helpful for performing target costing, other costing methods may be more appropriate in certain situations.

(CGA)Which of the Following Statements Is True About the Variable