T, F. In a make or buy short-run decision situation, the critical element to consider is whether the variable cost to produce the item is higher or lower the competitor’s selling price.T, F. One of the disadvantages of Variable Costing method is that it ignores the principle of matching revenues with related costs.

Variable cost is that cost that varies with the number of units produced. It means that increase in…

Answered: T, F. In a make or buy short-run…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 20MC: Product costs under variable costing are typically: A. higher than under absorption costing B. lower...

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T, F. In a make or buy short-run decision situation, the critical element to consider is whether the variable cost to produce the item is higher or lower the competitor’s selling price.
T, F. One of the disadvantages of Variable Costing method is that it ignores the principle of matching revenues with related costs.

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