What is an advantage of using historical costs on a financial statement? Group of answer choices It shows the cost of one more additional unit of output asy to prove by looking at source purchase documents
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What is an advantage of using historical costs on a financial statement?
Group of answer choices
It shows the cost of one more additional unit of output
asy to prove by looking at source purchase documents
Step by step
Solved in 3 steps
- Which method results in a more realistic amount for income because it matches the most current costs against revenue? a.FIFO b.Weighted average cost c.Specific identification d.LIFODiscuss the merits and demerits of the cost volume profit analysis (CVP)Which of the following facilitates the comparison of financial performance with one period to another period is possible ? a. Consistency Principle b. Historical cost concept c. Matching Concept d. Going concern Assumption
- Reviewing cost behaviour patterns over time from the accounting records and using that review to predict future costs best describes: O Regression analysis O Scatter plots O Analysis at the account level O Two-point methodsWhat is cost-efficiency according to: 1. Profit Projection 2. Cost estimatesSelect which one is the method for ‘material issue pricing’. a. Weighted average method b. ABC analysis c. Reorder level d. Economic order quantity
- Which of the following facilitates the comparison of financial performance with one period to another period is possible ? O a. Historical cost concept O b. Going concern Assumption O c. Matching Concept O d. Consistency PrincipleTarget cost = Selling price - ______________. a. Cost b. Profit margin c. Revenue d. ExpensesExamples of how cost–volume–profit analysis can be used for decision-making.
- choose the letter of answer Inventories are usually written down to net realizable value a. Item by item b. By classification c. By total d. By segmentCurrent Cost Concept - Measurement of Elements Why is Accounts Payable one of the elements that is normally presented at current cost? Please explain.In current cost financial statements: a. General price level gains or losses are recognized b. Amounts are always statement in common purchasing power c. All items are different from what they would be in a historical cost statement of financial position. d. Holding gains are recognized