FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- What is operating profit margin?arrow_forwardIn CVP Analysis, total costs are defined as costs derived from product costs and period costs. TRUE FALSEarrow_forwardWhat are: Relevant / irrelevant / Differential Costs Relevant / irrelevant / Differential Revenues Avoidable / unavoidable costs Sunk costsarrow_forward
- When making decisions, managers should consider a. revenues that differ between alternatives. b. costs that do not differ between alternatives. c. only variable costs. d. sunk costs in their decisions.arrow_forwardIdentify two ways in which a contribution margin income statement differs in format from a traditional income statement. Which is more useful for decision making and why?arrow_forwardWhich format of the Income Statement is appropriate for financial reporting? O Variable costing O Activity-based O Absorption O any format is fine for financial reportingarrow_forward
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- Profitability changes may be simply calculated by using what kind of tool: sales price/volume/variable costs/fixed costs.arrow_forwardTo make predictions about costs and income, you must first classify costs by their behavior. True Falsearrow_forwardWhich of the following is not a method used by managers to determine cost behavior? High-low Method Scatterplot Account analysis Regression Analysis Derivationarrow_forward
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