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  1. #1
    hatgray is offline Member
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    As is - Context

    Hi,

    "Variable costing is more appropriate for internal decision making, because it is not affected by the level of production, as is absorption costing. Under absorption, net income will increase as more units are produced due to the inventorying of fixed overhead. Such is not the case under variable costing, where fixed overhead is expensed as incurred."

    Can someone please explain the context of "as is" in this sentence?
    My usual connotation is that it means "like" but the meaning is actually, variable costing is not affected by the level of production but absorption costing is affected so can it mean "compared to"?


    Kindly help.
    Thanks
    Last edited by emsr2d2; 29-Aug-2017 at 19:58. Reason: Removed non-functioning code and complete repetition of the post

  2. #2
    emsr2d2's Avatar
    emsr2d2 is online now Moderator
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    Re: As is - Context

    Welcome to the forum.

    In my opinion, that's poorly worded. If the writer meant that absorption costing is affected by the level of production, he/she should have written:

    "... it is not affected by the level of production, as absorption costing is".

    Please tell us where you found that extract. It's important to quote the source of anything you post if you did not write it yourself.
    Remember - if you don't use correct capitalisation, punctuation and spacing, anything you write will be incorrect.

  3. #3
    hatgray is offline Member
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    Re: As is - Context

    This is from the CMA essay questions and answers book.

    So is it considered wrong grammar?

    Thanks

  4. #4
    emsr2d2's Avatar
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    Re: As is - Context

    Quote Originally Posted by hatgray View Post
    This is from the CMA essay questions and answers book.

    So Do you consider it considered wrong? grammar?

    Thanks.
    As I said, if they meant what I suggested they meant, then yes, the word order is wrong.
    Remember - if you don't use correct capitalisation, punctuation and spacing, anything you write will be incorrect.

  5. #5
    GoesStation is offline Moderator
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    Re: As is - Context

    The phrase "as is absorption costing" is another way to write "as absorption costing is". They mean the same thing. The latter word order is clearer.
    I am not a teacher.

  6. #6
    emsr2d2's Avatar
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    Re: As is - Context

    In this context they don't mean the same thing for me, specifically because the preceding sentence says that variable costing is not affected by the level of production. To follow that with "as is", absorption costing would also have to be not affected by it. "As is" can only connect two matching features.

    John is a plumber, as is David. (They are both plumbers.)
    John is not a plumber, as David is. (David is a plumber. John is not.)
    Remember - if you don't use correct capitalisation, punctuation and spacing, anything you write will be incorrect.

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