Question
The matching principle in accounting is a principle that states that companies report expenses the same time as the revenues they are related to. The
The matching principle in accounting is a principle that states that companies report expenses the same time as the revenues they are related to. The variable costing differs from this approach in that fixed costs are expenses in the period during which they incur. Therefore this does violate the matching principle. Although, the variable costing does not serve effective for long term use one of its short term advantages is that it can help calculate the contribution margin which can be used to determine profitable products.
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