The Best Way to Adjust for the Presence of Fixed

question 90

Multiple Choice

The best way to adjust for the presence of fixed costs when using the simplified approach for proforma income statement preparation is

• A) to proportionately vary the fixed costs with the change in sales.
• B) to disproportionately vary the costs with the change in sales.
• C) to adjust for projected fixed-asset outlays.
• D) to break the firm's historical costs into fixed and variable components.

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Definitions:

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