Hi,
I found this in a book
"Variable costing is more appropriate for internal decision making, because it is not affected
by the level of production, as is absorption costing. Under absorption, net income will
increase as more units are produced due to the inventorying of fixed overhead. Such is not
the case under variable costing, where fixed overhead is expensed as incurred."
Can someone please explain the context of "as is" in this sentence?
My usual connotation is that it means "like" but in this sentence you can see that they are trying to convey that these methods are not the same, so can it mean "compared to"?
Kindly help.
Thanks
My usual connotation is that it means "like" That's what it means here, too. Both variable costing and absorption costing are unaffected by production level.
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hat gray 40Can someone please explain the context of "as is" in this sentence?My usual connotation is that it means "like"
That's what it means here, too. Both variable costing and absorption costing are unaffected by production level.