An Important Tool in Predicting the Volume of Activity,the Costs

question 2

Multiple Choice

An important tool in predicting the volume of activity,the costs to be incurred,the sales to be made,and the profit to be earned is:

• A)Target income analysis.
• B)Cost-volume-profit analysis.
• C)Least-squares regression analysis.
• D)Variance analysis.
• E)Process costing.

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Definitions:

Development Costs

Expenditures associated with the research and development of a company's products or services, which might be capitalized or expensed depending on the nature of the project and accounting standards.

Intangible Assets

Assets that do not have physical substance but are identifiable and provide future economic benefits, such as patents, trademarks, and copyrights.

Physical Substance

This refers to the tangible nature of an asset, meaning it can be seen, touched, or physically measured.

Acquisition Cost

The total cost associated with acquiring an asset, including purchase price, installation fees, and other expenses necessary to prepare the asset for its intended use.