Managerial accounting:

1. Which is less risky, higher levels of fixed costs or higher levels of variable costs? Why?

One more thing, regarding breakeven analysis, what do I use this for? If I'm looking at my results for last year, why do I care what my breakeven point was?

2. What is the main difference between absorption costing and variable costing? What are the advantages of treating fixed manufacturing costs as a product cost? What about treating them as a period cost?