1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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?

You might be interested in
A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month,
olga nikolaevna [1]

Answer:

Direct Material Price Variance = $300 Favorable

Explanation:

Direct Material Price Variance = (Standard Price - Actual Price) \times Actual Quantity

Standard Price = $4 per pound

Actual Price = \frac{Actual\ Cost}{Actual\ Units} = \frac{5,700}{1,500} = 3.8

Since the actual price is less than the standard price the variance will be favorable as the amount paid for actual use is less then the estimated standard cost.

Thus, direct material price variance = ($4 - $3.8) \times 1,500

= $300 Favorable

7 0
3 years ago
A consumer downloads 4 movies and 3 apps per week. Suppose the price is $4 per movie and $4 per app, and the marginal utility th
maks197457 [2]

Marginal utility will be calculated for movies by: 14/(4*4) which would mean 0.875 utils per dollar per movie. Whereas, for apps, it would be: 8/(3*4) which would mean utils per dollar per app to be 0.667. Hence, movies tend to carry higher utility.

8 0
4 years ago
When comparing Real Estate Investment Trusts (REITs) to Real Estate Limited Partnerships (RELPs), all of the following statement
Natalija [7]

Answer: option C is correct

Explanation:

Real Estate Investment trusts company, REITs do not allow for flow through of loss. Real estate Investment Trusts,REITs owns and manage real estate.

Real Estate Investment Trust company, REITs cannot pass losses to their shareholders, therefore, they invest solely in limited partnerships.

Real Estate Investment trust, REITs also do invest in securities and shares.

But, Real Estate Limited Partnerships company, RELPs allow both for flow through through of loss and for flow through of gain

6 0
3 years ago
The director of marketing has asked the app builder to create a formula field that tracks how many days have elapsed since a con
olya-2409 [2.1K]

Answer:

D. Today()

Explanation:

Date value function: This function converts the date form into the text form.  For example, The date is 21/08/2019 so, this function coverts August 21, 2019.  

Now function: This function shows the current date and the time which is actually shown in the computer system.  

Date function: In this function, we take the month, date, and the year simultaneously, so that it can become the valid date.  

Today function: This function works when the user wants the date of a particular thing. It can be the current date, backdate or forward date

So, in the given situation, the director wants how many days have elapsed, so for this, we use the today() function.

5 0
3 years ago
In the normal operation of business, you receive a check from a customer and deposit it into your checking account. With your ba
Basile [38]

Answer:

B. Subtract both values from balance according to books.

Explanation:

There is an option below the question ask for details

The NSF and service charges are recorded in the bank statement and to balance it should be recorded in books as well. So these two items would be deducted from the books so the book balance will be got reduced

As bank reconciliation means the balance of bank and the balance of cash should be equal and balanced

5 0
3 years ago
Other questions:
  • On January 1, 2014, Harrington Company has the following defined benefit pension plan balances.
    15·1 answer
  • Why have many nations chosen to use taxpayer dollars to subsidize primary, secondary, and higher education
    6·1 answer
  • Because scarcity exists, any strategy for allocating scarce resources must address A) for whom to produce, what to produce, and
    11·2 answers
  • 6. For a business that uses the allowance method of accounting for uncollectible receivables: (a) Journalize the entries to reco
    7·1 answer
  • The accrued interest on a bond __________.
    8·1 answer
  • trade restrictionsa. reduce the gains from trade for the country as a wholeb. increase the gains from trade for poor countriesc.
    9·1 answer
  • Warren opened a new computer store in town. When customers purchase a computer from his store, they automatically receive an ext
    14·1 answer
  • You are asked to study the causal effect of hours spent on employee training​ (measured in hours per worker per​ week) in a manu
    15·1 answer
  • The project management institute initially published the _________ to address the need to bridge the gap between organizational
    7·1 answer
  • In practice, items such as wood screws and glue used in the production of school desks and chairs would most likely be classifie
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!