Which of the following observations is true?
A. In the contribution-margin approach, all costs are allocated to products, customers, or other categories.
B. Top management always prefers the contribution-margin approach.
C. Both the full-cost approach and the contribution-margin approach yield similar decisions.
D. Variable costs are irrelevant in the contribution-margin approach.
E. The contribution-margin approach ignores some costs to get results.
Answer: E
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Cost accounting is directed toward the needs of
a. regulatory agencies. b. external users. c. internal users. d. stockholders.
Which of the following is correct with respect to a bank customer's duty to discover and report unauthorized signatures?
a. The customer is required to exercise reasonable care and promptness to examine the bank statement. b. A customer's duty of examination includes checking the signatures of payees or indorsers. c. The bank is liable on all items with unauthorized signatures even if these canceled checks were returned to the customer four years prior to the discovery of the alterations. d. The bank is not required to exercise ordinary care in paying the items.
The control components used by companies as a framework when analyzing their internal control systems include:
A. control environment. B. covenants. C. compliance. D. corruption.
The most recent price of SmoothSound Electronics was $63.75. The EPS for the most recent four quarters was 0.61, 0.64, 0.72, and 0.74. Find the current P/E (rounded to one decimal place).
Fill in the blank(s) with the appropriate word(s).