Select the incorrect statement regarding the contribution margin income statement.
A. Assuming no change in fixed costs, a $1 increase in contribution margin will result in a $1 increase in profit.
B. Contribution margin represents the amount available to cover product costs and thereafter to provide profit.
C. The contribution margin approach for the income statement is unacceptable for external reporting.
D. The contribution margin approach requires that all costs be classified as fixed or variable.
Answer: B
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Dave owns several computer repair shops across the Midwest, and he has set a goal for his company of cutting costs in all his locations over the next three years. Dave has set a(n)
A. tactical goal. B. management guideline. C. business plan. D. strategic goal. E. operational goal.
Under the indirect method, net income is adjusted for transactions that affect net income and cash flows by different amounts
Indicate whether the statement is true or false
One common problem with the current ratio is that it is susceptible to "window dressing." If prior to the end of the accounting period Saxon Company has a current ratio of 1.5 and management wishes to boost its current ratio it may decide to
a. pay off accounts payable prior to year end. b. purchase more inventory on account. c. purchase short-term investments with cash. d. purchase more inventory with cash.
Answer the following statement(s) true (T) or false (F)
1. Social cognition explains how we develop mental representations and how our mental representations influence the way we process information about people and social events. 2. The image that the word fish brings to mind is part of a mental representation called a script. 3. We create a schema for people of a nationality by assigning a set of characteristics to a particular national culture label. 4. Schemas are largely unconscious mental representations that shape how we think and act in a given situation. 5. Norms can be more important predictors of behavior in collectivist than in individualist cultures.