Which of the Following Are Internal Reports That Accounting Provides

question 181

Multiple Choice

Which of the following are internal reports that accounting provides to internal users?

• A) Forecasts of cash needs for next year.
• B) Financial comparisons of operating activity alternatives.
• C) Both forecasts of cash needs and financial comparisons are internal reports.
• D) Neither forecasts of cash needs or financial comparisons is an internal report.

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Definitions:

Average Total Cost

The total cost divided by the total quantity produced, representing the cost per unit of output.

Marginal Revenue

The uplift in revenue achieved by marketing an additional unit of a product or service.

Marginal Cost

The cost incurred by producing one additional unit of a product, a key concept in economic decision-making regarding production levels.

Short-Run Supply Curve

A graphical representation that shows the quantity of goods a firm is willing and able to produce and sell at different price levels over a short period, not allowing for all factors of production to vary.