What costing approach would you prefer to use if you were a division manager: absorption costing or

Jun 14th, 2016
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What costing approach would you prefer to use if you were a division manager: absorption costing or variable costing? Explain your reasoning 300 words apa style 1 scholorly citation (no web sites)

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Variable costing is preferred over absorption costing. Variable costing gives a superiorcomprehension of the impact of fixed expenses on the net profits of the aggregate fixed cost forthe period appears on the income statement. Different strategies for controlling costs, forinstance, standard costing framework and flexible budget plans have a close association with thevariable costing framework. Understanding variable costing framework makes the utilization ofthose strategies simple. Organizations utilizing variable costing framework prepare incomestatement in contribution margin design

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