Which Is the True Statement

question 169

Multiple Choice

Which is the true statement?

• A) In a CVP income statement costs and expenses are classified only by function.
• B) The CVP income statement is prepared for both internal and external use.
• C) The CVP income statement shows contribution margin instead of gross profit.
• D) In a traditional income statement costs and expenses are classified as either variable or fixed.

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Definitions:

Risk

Exposure to the chance of loss or damage, often quantified in terms of probability and impact.

Crystal Ball

In forecasting and predictive analysis, a tool or method that allows for the estimation of future conditions or occurrences.

Tornado Charts

A graphical method used in sensitivity analysis to show the effect of varying different parameters on a particular outcome.

Monte Carlo Simulation

A computational algorithm that relies on repeated random sampling to obtain numerical results, often used in physical and mathematical problem-solving.