In Order to Perform Their Required Roles and Be Valuable

question 39

Multiple Choice

In order to perform their required roles and be valuable business partners,accountants must understand all of the following except:

• A)How the business identifies and designs its products and services.
• B)How the business collects data,summarizes it,and communicates business information.
• C)How the business delivers value,interacts with other businesses,and is a good corporate citizen.
• D)What risks the business faces,and how internal controls can mitigate those risks.

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Definitions:

Absorption Costing

A costing approach that encompasses all costs associated with production, namely direct materials, direct labor, and both variable and fixed overheads, in the product's final cost.

Variable Costing

An accounting method that only includes variable costs - costs that fluctuate with production volume - in the calculation of unit cost.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent or salaries.

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product.