Why do managers frequently prefer variable costing to absorption costing for internal use?

Managers may prefer variable costing because it classifies costs both by their function and their behavior. When costs are classified by behavior, managers can more accurately predict how total costs will change when volume changes. With more accurate information, managers can make better production and pricing decisions.

Business

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The majority of the option premium is lost in the final days prior to expiration

Indicate whether the statement is true or false.

Business

_____ often determines organization effectiveness

a. Competition between work groups b. Collaboration between work groups c. Technical training d. A win-lose strategy e. answers a and d

Business