Variable costing is more useful than absorption costing for:
i. special order decisions
ii. short-term pricing of products
iii. long-term pricing of products

A) i
B) iii
C) i and ii
D) i, ii and iii

Variable Costing

An accounting method that includes only variable costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and inventory valuation.

Absorption Costing

An accounting method that assigns all manufacturing costs, both variable and fixed, to products.

Special Order Decisions

These are considerations made by businesses to accept or decline an order from a customer that is not part of the company's standard line of production or services, often involving unique pricing or costs.