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quester [9]
3 years ago
7

Classification shifting by managers leads to under-reporting of total expenses and over-statement of bottom-line net income.

Business
1 answer:
Step2247 [10]3 years ago
4 0

Answer: False

Explanation:

Classification shifting is a method used whereby the core earnings are manipulated by misclassifying the items in the income statement.

One way that managers make use of classification shifting is by reporting the operating expenses for the business as nonoperating expenses. This is usually done in order to inflate the operating income.

The statement in the question is false as classification shifting by managers doesn't lead to under-reporting of total expenses and over-statement of bottom-line net income rather it lead to over reporting.

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The after sales services are included in the product category of market mix.  Option C

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From the given, discounts comes under pricing, product image used in advertising comes under promotion and substitute goods belong to a different topic. After-sales services comes under the service branch of the product category.

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