The market research has also shown that the product will attract more customers and raise large amount of revenue to the firm in the future. However, there is always a debate within the company accounting department on how to calculate the performance (profit). The chief financial accountant believes that absorption costing does a better job of matching costs with revenues thus presents more accurate profit figure than variable costing.

Whether you agree or not with the argument of the chief financial accountant. Why or why not?

Detailed answer required minimum 350 words