Which of the Following Is Not an Advantage of Using

question 12

Multiple Choice

Which of the following is not an advantage of using a physical model?

• A) Transaction data stores are identified.
• B) It is easier to create compared with the logical model.
• C) The sequence of processes is identified.
• D) Controls are included.

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Definitions:

Absorption Costing

A costing method where all manufacturing costs, including both fixed and variable costs, are attributed to the product, thus fully absorbing them.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Variable Manufacturing Costs

Costs that vary directly with the level of production, including expenses like raw materials and direct labor.

Variable Costing Income

An income calculation method that only includes variable costs - costs that fluctuate with production levels - in determining net income.