Why do managers frequently prefer variable costing to absorption costing for internal use?
Managers may prefer variable costing because it classifies costs both by their function and their behavior. When costs are classified by behavior, managers can more accurately predict how total costs will change when volume changes. With more accurate information, managers can make better production and pricing decisions.
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Accountants have not accepted the role of disclosing the firm's capacity to make distributions to stockholders
Indicate whether the statement is true or false
Which of the following occurs when a corporation's board of directors declares a 10% stock dividend?
A) Stock Dividends will be credited for the new shares times the current market value of the stock. B) Stock Dividends will be debited for the new shares times the current market value of the stock. C) Stock Dividends will be debited for the new shares times the par value of the stock. D) Stock Dividends will be credited for the new shares times the par value of the stock.
Which of the above companies has the highest debt-paying ability?
The times-interest-earned ratios of four companies are given below:
A) Forge Company
B) Fellow Company
C) Stacy Company
D) Bennett Company
The entry to record the retirement of treasury stock will include a debit to Common Stock for the amount of the cost to retire the shares
Indicate whether the statement is true or false