The best way to adjust for the presence of fixed costs when using the simplified approach for pro forma income statement preparation is ________
A) to proportionately vary the fixed costs with the change in sales
B) to adjust for projected fixed-asset outlays
C) to disproportionately vary the costs with the change in sales
D) to break the firm's historical costs into fixed and variable components
D
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Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company's line. A friend suggested combining spices from India with tea. In the ________ stage of the new-product process, the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well.
A. idea generation B. commercialization C. business analysis D. screening and evaluation E. market testing
U.S. GAAP and IFRS on accounting for repurchases and reissuances of treasury shares follow the principle that treasury stock purchases and sales are operating transactions and therefore debits Cash (for economic gains) or credits Cash (for economic losses)
Indicate whether the statement is true or false
The formula to compute direct materials price variance is to calculate the difference between
A) actual costs - (actual quantity standard price) B) actual cost + standard costs C) actual cost - standard costs D) (actual quantity standard price) -standard costs
The focus of the master schedule in an ATO production environment is to ______.
A. produce finished goods to meet inventory and customer service levels B. produce components, modules, and subassemblies ready to be assembled based on order C. ensure that capacity is available for assembling end product when order is received D. produce standardized modules and subassemblies