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“Most variable costs are controllable in short term.”
What is meant by short term and long term in costing by behavior?It is really your decision-making time horizon.
If you are looking at production next week, most costs are fixed….even labour costs might be difficult to reduce in that period.
If you are looking at production decisions for next year, you could make supervisor salaries and rents variable.
Sir I am still unclear. Can you explain more? How can cost behavior has relation with time?
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