The problem with using ________ is that it clouds the true relationships among price,volume,and costs by including fixed expenses in unit cost.
A)full-absorption costing
B)variable costing
C)contribution margin costing
D)break-even costing

Question

Quizplus · Accepted Answer

Full-absorption costing includes fixed expenses in the unit cost, making it difficult to clearly see the relationships between price, volume, and costs. Variable costing, contribution margin costing, and break-even costing all exclude fixed expenses from the unit cost, making them better options for analyzing these relationships.

The Problem with Using ________ Is That It Clouds the True