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Variable Costing use in short-run pricing policies

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How financial data, prepared on the basis of variable costing, can assist management in the development of short-run pricing policies?

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Solution Summary

The ways in which variable costing data can assist management in short-run pricing policies are explained.

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Variable costing can assist management in the development of short-run pricing policies in many ways. In variable costing the inventory only includes the variable costs of production. These include direct labor, direct material, and variable overhead. Any fixed costs ...

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