A) Lower management usually does not have control over most fixed costs. B) Fixe

Question

A) Lower management usually does not have control over most fixed costs. B) Fixed costs are not relevant in the long run. C) Only variable costs are controllable in the long and short run. D) Absorption costing is not relevant for long-run decisions SSAY. Write your answer in the space provided or on a separate sheet of paper. 7) For decisions that affect analyzing profitability, consider the following decision focus. State the appro costing method and the reason for your answer. Decision Appropriate Costing Reason Focus Method Sales mix ULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 8) Unit product cost calculations using absorption costing do NOT include

Explanation / Answer

Appropriate costing method with decesion focus on sales mix is marginal costing because We can analysis the variable cost & fixed cost, & accordingly make decesions. Other methods will give us a incorrect picture. However in Marginal costing, we can find a contribution of Sales mix and compare it with another sales mix to find the profitable sales mix,whereas fixed cost remains constant irespective of level of activity of production. So, it is best method to analyse the sales mix decisions.

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