Variable Costing Discussion Questions
Question Description
I’m working on a accounting question and need the explanation and answer to help me learn.
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Q1. What was the point of the Dead Duck Brewery illustration? (Hint: when to stop a product line or raise prices?)
Q2. Proponents of variable costing believe that having fixed cost per unit distorts the costing picture and results in inventory recessions. What is the downside of using variable costing?
Q3. What is the major difference between throughput variances and traditional flexible budget variances?
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