Answer:
Please see the explanation below
Step-by-step explanation:
Managers may prefer variable costing because it classifies costs both by their function and their behavior. When costs are classified by behavior, managers can more accurately predict how total costs will change when volume changes. With more accurate information, managers can make better production and pricing decisions.
Managers often debate on whether to use variable costing or other cost methods such as absorption costing. Under absorption costing, accountants allocate all manufacturing labor, materials and overhead costs into the cost of a product. Variable costing only includes variable labor, materials and overhead costs in the product. Fixed manufacturing overhead expenses such as factory rent and property taxes are excluded from product cost. This is the reason that managers prefer variable costing over absorption costing.