The Technique Used in Management Accounting to Determine the Change

question 6

Multiple Choice

The technique used in management accounting to determine the change in profit associated with the cost or benefit of the next (or the marginal) unit is called __________.

• A) scenario analysis
• B) goal-seek analysis
• C) marginal analysis
• D) predictive analytics

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Definitions:

Intercompany Transactions

Financial transactions occurring between two divisions or subsidiaries within the same parent company.

Strategic Investment

An investment made by a company to build a lasting interest in a related company to help further business objectives.

Significant Influence Investments

Investments in which the investor has the power to participate in the financial and operating policy decisions of the investee but does not control or jointly control them.

Joint Control

A situation in an agreement where two or more parties have control over a business activity, requiring unanimous consent for decision-making.