Question

Why might the revenue and cost figures shown on a standard income statement not represent the actual cash inflows and outflows that occurred during a period

Answer 1

Answer:

Actual figures are only available after the period end using these will delay product costing, price setting and profit determination.

Explanation:

Firms use standard or budgeted revenue and cost figures in the income statement because actual figures are only available after the period end using these will delay product costing, price setting and profit determination.