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vagabundo [1.1K]
3 years ago
6

A traditional GAAP income statement does not help managers to predict the financial results of their decisions. Which of the fol

lowing is a reason for this shortcoming?
a. The GAAP statement is based on cost function rather than cost behavior.
b. The GAAP statement is based on classification rather than function.
c. The GAAP statement is based on cost behavior rather than cost function.
d. The GAAP statement is based on function rather than classification.
Business
1 answer:
Amiraneli [1.4K]3 years ago
7 0

Answer:

A) The GAAP statement is based on cost function rather than cost behavior.

Explanation:

Income statements that follow GAAP rules categorizes expenses based on their business function: product, selling or administrative.

While cost behavior categorizes costs based on how they influence a company's activities: variable, fixed and mixed. When a manager wants to measure the impact of any decision he/she makes, they need to use this type of categorization. For example, if fixed costs increase, what is the new break even point? If variable costs decrease, how is the marginal cost affected?

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The Bretton Woods institutions are reflective of a ________ economic perspective. a. constructivist b. statist c. liberal d. mer
ser-zykov [4K]

Answer:

C is the correct answer.

Explanation:

The result of the Bretton Woods System was launched after the end of the world war. It was a liberal system as it aimed to set an open system of international trade in goods and services. It was also facilitated by semi-fixed exchange rates. But at the same time, it wanted to embed the market forces in a framework where they could be controlled by National Governments so that they can control the international capital flow. And for this purpose, The world Bank and International Monetary fund were created.

7 0
3 years ago
Porches, Inc. sells lawn furniture. Selected financial information for the most recent year is as​ follows:Beginning merchandise
Hatshy [7]

Answer:

The operating income for the​ year is $97,000

Explanation:

For computing the operating income, first, we have to calculate the cost of goods sold. The formula to compute the cost of good sold is shown below:

= Beginning merchandise inventory + Purchases during the year - Ending merchandise inventory

= $33,200 + $92,000 - $35,000

= $90,200

Now, the operating income would be

= Sales - the cost of good sold - selling and administrative expenses

= $262,900 - $90,200 - $75,700

= $97,000

6 0
3 years ago
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000
yarga [219]

Answer:

An increase in sale for 90 units, will increase the net income for 1$,170

Explanation:

<em>We are not given with any information of additional cost or special price for this units, so we use the current values.</em>

So we simply multiply the contribution per unit by the increase in sale.

Contribution Margin  x Δ sales = Δ income

13 x 90 = 1,170

Each unit contributes with 13 additional income, there are 90 additional units

Total income added 1,170

8 0
3 years ago
A. Macarty Company's records indicate the following information for the year: Merchandise inventory, 1/1 $ 550,000 Purchases 2,2
cestrela7 [59]

Answer:

add all them and there u go

Explanation: so add 550,000 -2,50,000 + 3,100,000+600,000 -30%     hope that helps

8 0
3 years ago
The situation in which a person places greater value on a good as fewer and fewer people possess it is called the
Phantasy [73]

Answer:

The correct answer is: Snob effect.

Explanation:

The Snob effect is a phenomenon that tries to explain why the demand for a good or service increases in the high-income sector while it decreases substantially in the low-income sector. This scenario is created when people need access to rare or exclusive goods or services.

6 0
3 years ago
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