Assignment: For furniture business, or your work group, prepare a list of all possible costs. For each, indicate if it is fixed or variable. If it is variable, indicate if it can be controlled within three months time.
Problem 1: Does this firm have full control of its selling price, partial control, or must it accept the price that already exists in the market? How does the market price get set?
Problem 2: Does the company's financial manager use variable costing or full costing when it evaluates its products?