Why is absorption costing not used for CVP analysis?
Absorption costing is not used in break-even analysis because it presents a classification of costs by function rather than by behavior. Without a behavioral classification of costs, it is impossible to predict how total costs change as volume changes.
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Which of the following statements is true?
A. Everything else remaining unchanged, higher the future value of an investment, higher will be the present value. B. Everything else remaining unchanged, higher the rate of discount on an investment, higher will be the present value. C. ?The future value of an investment is unrelated to the principal amount invested. D. ??The future value of an investment is unrelated to the ongoing rate of interest.
Cite the source, display them visually, and round them off are guidelines for using statistics
Indicate whether this statement is true or false.
The auditor is most likely to presume that a high risk of a fraud relating to the misappropriation of assets exists if:
A. inadequate employee training results in lengthy EDP exception reports each month. B. the entity does business with several related parties. C. the entity is a multinational company that does business in numerous foreign countries. D. inadequate segregation of duties places an employee in a position to perpetrate and conceal theft.
Variable costing is more useful than absorption costing in determining a company's break-even point
Indicate whether the statement is true or false