Which of the Following Statements Is True

question 9

Multiple Choice

Which of the following statements is true?

• A)It is unnecessary to analyze operating expenses over which management exercises discretion.
• B)Impairment charges do not need to be analyzed since they are generally a non-recurring expense.
• C)A good way to improve operating profit is to cut repairs and maintenance costs as much as possible.
• D)Operating expenses can be easily analyzed by preparing a common-size income statement.

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Definitions:

Disruptive Conditions

Circumstances that significantly alter the normal course of operations, potentially causing upheaval.

Teamwork

The collaborative effort of a group to achieve a common goal or to complete a task in the most effective and efficient way.

Constructive Purpose

The intention behind actions or policies that aim to bring about positive change, improvement, or resolution of problems.

Virtual Teams

Groups of individuals who work together from different geographic locations, connected by technology such as email, video conferencing, and collaboration platforms.