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Write an e-mail to your coworker explaining a topic related to Variable Costing and Segment Reporting:...

Write an e-mail to your coworker explaining a topic related to Variable Costing and Segment Reporting: Tools for Management

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Answer #1

Dear Ram,

VARIABLE COSTING :

  • Variable Costing plays main role in strategic decision making
  • It helps to understand the difference between cost,volume& profit.
  • Variable cost per unit is always constant but based total production total variable cost varies.
  • It can also helps for cost control based on that company 's profits increase that lead to greater wage plan for employees .

SEGEMENT REPORTING :

  • The objective of segment reporting is to provide information to investors and creditors regarding the financial results and position of the most important operating units of the company,which they can use as the basis for decisions related to the company.
  • The main advantage of segment reporting is transparency
  • Better understanding of the financial position of the company .

Thanking you.

Assumed that coworker name is Ram.

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