Chapter 6, Problem 9BTN

To determine

Concept introduction:

Variable Costing:

In Variable Costing, all the variable expenses which are directly related to a product or service are considered to compute the cost of product or services. When using variable costing for decision making, the incremental cost of service and incremental profits generated needs to be analyzed to compute the incremental profits.

To explain:

The method of costing more suitable to make decisions.