Which of the Following Statements Is Not Correct About the Methods

question 87

Multiple Choice

Which of the following statements is not correct about the methods managers use to model the relationship between revenues,costs,profit,and volume?

• A)Each method provides a different way to express the CVP relationships,yet answers the same basic question.
• B)Choice of method depends,in part,on personal preference.
• C)Choice of method depends,in part,on the available information.
• D)Each method yields a different final answer to be used in analysis.

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Definitions:

Liability

A financial obligation or debt owed by a company to another entity, payable in the form of money, services, or goods, recorded on the right-hand side of the balance sheet.

Accounting Equation

The fundamental principle of accounting that states that assets equal liabilities plus owners' equity, serving as the foundation for double-entry bookkeeping.

Liability

Debts or financial duties a business is responsible for paying back to other entities, which require settling by transferring economic resources over a period.

Cash

Money in the form of coins or banknotes, including the balance of bank accounts.