Variable Costing Income Statements Are Produced for

question 126

Multiple Choice

Variable costing income statements are produced for

• A) External decision makers
• B) Internal decision makers
• C) The Internal Revenue Service
• D) Only for top management

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Definitions:

Service Revenue

Income earned by a company for the services it provides to its customers.

Cash

The most liquid asset, representing currency or its equivalent that can be accessed immediately or near-immediately.

Interest-Bearing Note

A debt instrument where the borrower pays the lender interest over the life of the note, in addition to repaying the principal amount.

Long-Term Debt

Borrowings of a business that are due for repayment more than one year in the future.