Under GAAP

question 35

Multiple Choice

Under GAAP,

• A)absorption costing is required to be used for the costing of inventory for external reporting purposes.
• B)net income highlights differences between variable and fixed costs.
• C)measured net income is often used externally to evaluate performance, justify cost increases, or evaluate new projects.
• D)measured net income is often used internally to evaluate performance, justify cost increases or evaluate new projects.

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Definitions:

Superstitious Behavior

Actions or practices based on the belief in supernatural causality, where specific activities are thought to influence outcomes, despite the absence of a logical cause-and-effect relationship.

Persistent Behavior

A continuous, repeated pattern of actions or tendencies that are exhibited over time, often resisting change.

Token Economy

A form of behavior modification based on the systematic reinforcement of target behavior, through the use of tokens that can be exchanged for other rewards.

Fixed-Ratio Schedule

A reinforcement schedule in operant conditioning where a response is reinforced only after a specified number of responses have occurred.