What Is an Advantage of Using the Multiple-Step Income Statement

question 155

Multiple Choice

What is an advantage of using the multiple-step income statement?

• A)It highlights the components of net income.
• B)Gross profit is not a separate item.
• C)It is easier to prepare than the single-step income statement.
• D)Net income will be higher than net income computed using the single-step income statement.

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Definitions:

Stepping Stone Method

A mathematical procedure used in transportation problems of linear programming to find the least cost solution by moving from one feasible solution to another.

Reallocates

The act of distributing resources, tasks, or responsibilities again or differently, often to improve efficiency or outcomes.

Linear Programming Models

Mathematical models used to achieve the best outcome in a given mathematical model for a list of requirements represented as linear relationships.

Transportation Model

A technique for solving a class of linear programming problems.